S&P rates Constellis notes B

Standard & Poor’s said it affirmed the B corporate credit rating on Constellis Holdings LLC.

The agency also said it assigned a B rating and 4 recovery rating to the company’s proposed $450 million second-lien secured notes.

The 4 recovery rating indicates 30% to 50% expected default recovery.

The outlook remains stable.

The proceeds will be used to acquire Olive Group Ltd., refinance existing debt and pay its sponsors a dividend, S&P said.

The ratings reflect an expectation that the company will see meaningful earnings growth and debt reduction in 2016, the agency said.

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