S&P rates Jarden convertibles BB-

Standard & Poor's said it assigned ratings to Jarden Corp.'s proposed $600 million senior subordinated convertible notes due 2034, issued under Rule 144A without registration rights.

The agency rated the new subordinated notes BB- (one notch below the BB corporate credit rating on the company) with a recovery rating of 5, indicating expectations of modest (10% to 30%) recovery in the event of a payment default.

Jarden indicated that it will use the net proceeds for the repurchase of up to $250 million of common stock, with the remainder used for general corporate purposes and potential debt repayment.

The company had $4.85 billion of debt outstanding as of Dec. 31.

S&P said the ratings reflect its assessment of Jarden's business risk profile as "satisfactory" and financial risk profile as "aggressive." The company's business risk assessment incorporates the agency's view of the consumer durables industry's "low" risk and the company's "low" country risk, as the majority of Jarden's sales are in developed markets.

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