Mannington Mills Inc.'s Proposed $300 Million Term Loan B Due 2026 Rated 'BB-' (Recovery Rating: '3')

NEW YORK (S&P Global Ratings) July 10, 2019--S&P Global Ratings today assigned its 'BB-' issue-level rating and '3' recovery rating to Salem, N.J.-based flooring products manufacturer and distributor Mannington Mills Inc.'s proposed $300 million term loan B due 2026. The '3' recovery rating indicates our expectation for meaningful (50%-70%; rounded estimate: 55%) recovery in the event of a payment default. The proposed transaction also includes an extension of the company's $125 million asset-based lending (ABL) facility until 2024 (Unrated). The company will use the proceeds from the new term loan to repay its outstanding $243 million term loan B and $45 million of ABL borrowings as of June 30, 2019. We expect the company's adjusted debt leverage to remain in

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