S&P rates Cooke Omega notes B+

S&P said it assigned its B+ long-term corporate credit rating to Cooke Omega Investments Inc. The outlook is stable.

Omega, a newly formed subsidiary of Cooke Inc., is acquiring Omega Protein Corp. for $500 million.

At the same time, S&P said it assigned its B+ issue-level rating and 3 recovery rating to Omega's proposed $330 million senior secured notes. The 3 recovery rating reflects the expectation of meaningful (50%-70%; rounded estimate: 55%) recovery in the event of default.

“The ratings reflect the company's niche position in the global market and narrow business focus along with significant sourcing concentration, in one commodity from two nearby regions. In addition, we expect Omega will maintain a normalized leverage ratio in the 4x-5x range, albeit with significant volatility relating to production volume and weather patterns,” S&P said in a news release.

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