S&P rates Coca-Cola Bottling loan BBB

S&P said it assigned a BBB rating to Coca-Cola Bottling Co. Consolidated's $300 million senior unsecured term loan due 2021.

The proceeds will be used to repay outstanding balances on the $450 million unsecured revolving credit facility and the remaining $164.8 million of 5% senior notes due June 15, 2016.

Pro forma for the issuance and redemption, S&P said it estimates the company has about $920 million in adjusted debt outstanding.

The company announced today that it has entered into two additional Letters of Intent to exchange or expand territories and two manufacturing facilities in the southeastern United States, S&P said.

Pro forma for the announced territory expansion, the agency said it estimates Coke Consolidated's share will remain less than 20% of the Coca-Cola Co.'s overall U.S. volume.

Coke Consolidated's credit measures also will remain elevated, including a debt-to-EBITDA ratio of more than 4x over the next 12- to 18-months as the company invests in more bottling and distribution territory expansion, S&P said.

These investments are expected to lead to significant earnings and cash flow growth after 2016, the agency said.

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