S&P: Boulder Brands loans B+

Standard & Poor's said it assigned a B+ rating to Boulder Brands Inc.'s proposed $320 million senior secured credit facilities, consisting of a $75 million five-year revolving credit facility and a $245 million seven-year term loan.

The facilities also were assigned a recovery rating of 3, indicating 50% to 70% expected default recovery.

The rating is the same as the company's B+ corporate credit rating.

Boulder Brands subsidiaries, GFA Brands Inc., Udi's Healthy Foods LLC and UHF Acquisition Corp., are borrowers under the credit agreement. Boulder Brands Inc. guarantees the debt, S&P said.

The proceeds from the proposed term loan will be used to refinance its existing term loan and revolving credit facility and to pay related transaction costs, the agency said.

The ratings reflect the company's vulnerable business risk profile and aggressive financial risk profile, S&P said.

Credit factors also include the company's narrow product focus, customer and supplier concentration and small size relative to its financially stronger and larger competitors, the agency said.

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