S&P assigns Prestige loan BB

Standard & Poor's said it assigned its BB issue-level rating and 1 recovery rating on Prestige Brands Inc.'s proposed $853 million senior secured refinancing. The recovery rating indicates the belief that lenders could expect very high (90%-100%) recovery in the event of payment default or bankruptcy.

All existing ratings on the company, including the B+ corporate credit rating, are unchanged.

The outlook is negative. Pro forma for the proposed refinancing, total debt outstanding is roughly $1.6 billion.

S&P expects the company to use the proceeds from the refinancing to repay about $880 million of existing senior secured term loans. It will withdraw the ratings on the existing term loans upon repayment.

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