OREANDA-NEWS. S&P Global Ratings today assigned its 'B+' issue-level rating and '1' recovery rating to Crescent Communities LLC's proposed $400 million senior secured notes due 2021. The '1' recovery rating reflects our expectation for very high (90%-100%) recovery in the event of a default.

All of our other ratings on Crescent remain unchanged.

We expect Crescent to use the proceeds from the offering, in addition to cash on hand, to retire its existing $425 million senior secured notes due August 2017, which bear an interest rate of 10.25%. At the same time, the company has upsized its secured revolving credit facility to $75 million from $50 million, which will be fully committed and undrawn at closing. While our corporate credit rating on Crescent is unchanged, we view these transactions as positive for the company's credit profile due to the reduction of its total debt, the expected interest savings, and its increased liquidity from the larger revolver. Our 'B+' issue-level rating on the proposed notes is two notches higher than our corporate credit rating on the company because of their strong recovery prospects.

Charlotte, N. C.-based Crescent is a real estate development company that focuses on residential and multifamily communities and commercial projects and manages land holdings. The company also announced this year that it is expanding into the single-family homebuilding business, beginning with its core North Carolina markets.

For our full corporate rationale on Crescent, please see our most recent research update, published June 8, 2016, on RatingsDirect.