OREANDA-NEWS. S&P Global Ratings said today it assigned its 'BB' issue-level rating to Nashville, Tenn.-based building product manufacturer Louisiana-Pacific Corp.'s proposed $350 million senior unsecured notes due 2024. The recovery rating is '3', reflecting our expectation of meaningful (50%-70%; at the upper half of the range) recovery in the event of default.

The company will use proceeds from the proposed transaction to redeem $350 million of its existing senior unsecured notes due 2020. The transaction will allow the company to extend the tenor of its capital structure and reduce interest expense.

The 'BB' corporate credit rating and stable outlook on Louisiana-Pacific are unchanged and reflect the company's fair business risk and aggressive financial risk profile. For our complete analysis on Louisiana-Pacific, please see our research update published on Aug. 8, 2016, on RatingsDirect.