CHICAGO (S&P Global Ratings) Dec. 12, 2016--S&P Global Ratings today assigned its 'B+' issue-level rating to Marysville, Ohio-based The Scotts Miracle-Gro Co.'s proposed $250 million senior unsecured notes due 2026. We expect the net proceeds from the leverage-neutral transaction will be used to reduce borrowings under the $1.6 billion senior secured revolving credit facility. The recovery rating on the proposed notes is '6', indicating that creditors could expect negligible (0% to 10%) recovery in the event of a payment default. The notes will be guaranteed by each of the company's existing and future domestic subsidiaries. Our ratings assume the transaction closes substantially on the terms provided to us. Debt outstanding pro forma for the proposed transaction is about $1.3 billion.
