S&P rates Glatfelter notes BB+

Standard & Poor's said it assigned a BB+ rating to P.H. Glatfelter Co.'s proposed $100 million senior unsecured notes due 2016 with a recovery rating of 4, indicating an expectation of 30% to 50% recovery in the event of a default.

Glatfelter plans to use the proceeds, together with about $125 million cash on hand and $10 million of borrowings under its revolver credit facility, to fund the acquisition of Concert Industries Corp.

The acquisition does not affect the company's BB+ corporate credit rating and stable outlook, S&P said.

While the financing of the acquisition will increase Glatfelter's outstanding debt balances, the agency said it thinks that improving economic trends will lead to somewhat higher EBITDA in 2010.

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