S&P: Pinnacle loans B, CCC+

Standard & Poor's said it assigned a B corporate credit rating to Pinnacle Operating Corp., along with a B rating with 4 recovery rating to its $350 million senior secured first-lien term loan due in 2018.

The 4 recovery rating indicates 30% to 50% expected default recovery.

S&P also said it assigned a CCC+ rating and 6 recovery rating to the company's $125 million senior secured second-lien term loan maturing in 2019.

The 6 recovery rating indicates 0% to 10% expected default recovery.

The outlook is stable.

The proceeds from the term loans, as well as from an unrated $300 million revolving asset-based lending facility due in 2017 and $300 million in common equity, will be used to purchase Jimmy Sanders Inc.

Pinnacle, an affiliate of Apollo Global Management LLC, acquired Jimmy Sanders for about $850 million, including fees and expenses, a seasonal working capital adjustment and the repayment of Jimmy Sanders' outstanding debt.

The ratings reflect Pinnacle's weak business risk profile and highly leveraged financial profile, S&P said.

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