...NEW YORK (S&P Global Ratings) Nov. 27, 2017--S&P Global Ratings today assigned its 'B' issue-level rating and '4' recovery rating to Cleaver-Brooks Inc.'s proposed $395 million senior secured notes. The '4' recovery rating indicates our expectation for average (30%-50%; rounded estimate: 35%) recovery in the event of a payment default. All of our other ratings on Cleaver-Brooks remain unchanged. The company is amending its $60 million asset-based lending (ABL) facility and issuing $395 million of senior secured notes to refinance its existing secured notes and repay its outstanding ABL balance. The amendment will extend the ABL facility's maturity to 2022 and subject it to a 1.0x springing fixed charge covenant if excess availability falls below the greater of 10% of the borrowing base or $5 million. We view the company's proposed refinancing as leverage neutral. Over the next 12 months, we anticipate that the company's adjusted debt-to-EBITDA will be between 5.7x and 5.9x, which is consistent...
