S&P ups DS Waters, rates loan CCC+

Standard & Poor's said it raised the rating on DS Waters of America Inc.'s proposed first-lien senior secured credit facility to BB- from B, reflecting changes from the original proposed transaction structure, which includes reducing the size of the facility to $340 million from the originally proposed $465 million.

The amended proposed $340 million first-lien credit facility now comprises a five-and-a-half-year $285 million first-lien senior secured term loan and a five-and-a-half-year $55 million first-lien delayed draw term loan.

The agency said it revised the recovery rating on this first-lien debt to 1 from 3, indicating 90% to 100% expected recovery in a default.

S&P also said it assigned a CCC+ rating to the company's proposed $125 million second-lien senior secured credit facility.

The proposed second-lien credit facility comprises a six-year $105 million second-lien senior secured term loan and a six-year $20 million second-lien delayed draw term loan. The recovery rating on this debt is 6, indicating 0% to 10% expected recovery in a default.

The proceeds will be used to repay existing debt and fund a potential acquisition, the agency said.

The company's CCC+ corporate credit rating remains on CreditWatch with positive implications, S&P said.

The agency said it plans to raise the corporate credit rating to B from CCC+ based upon terms of the currently proposed recapitalization.

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