S&P rates Vulcan notes BBB

S&P said it assigned its BBB issue-level rating to Vulcan Materials Co.'s proposed senior notes due 2048 and floating-rate notes due 2021.

All of the other ratings on Vulcan remain.

The company plans to use a portion of the proceeds for general corporate purposes, including to finance its capital expenditure and working capital needs and repay or retire its outstanding debt.

Vulcan also intends to commence a private offer to exchange additional 2048 notes and cash for an undetermined portion of its outstanding 7.15% senior notes due 2037.

“Pro forma for its recent acquisition of Aggregates USA, we project that Vulcan's debt-to-EBITDA will be about 3.1x,” the agency said in a news release.

“We anticipate that the company will use its normal cash flows to reduce its debt-to-EBITDA to about 2.6x by the end of 2018, which is a level that we consider appropriate for the current rating.”

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