S&P cuts Freedom Group notes to B

Standard & Poor's said it revised its ratings on Freedom Group Inc.'s 10.25% senior secured notes due 2015 following an add-on of $75 million to the offering, bringing the total amount to $275 million.

The agency said it revised the recovery rating on the notes to five from 4 while it lowered the issue-level rating on this debt to B, one notch lower than the B+ corporate credit rating on the company, from B+, in accordance with its notching criteria for a five recovery rating.

According to S&P, the company plans to use roughly $50 million of issue proceeds to reduce its unfunded defined benefit pension liability, which was $60.3 million as of June 30, 2009. The remaining $22 million is for generate corporate purposes.

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