S&P assigns Grand Circle B, loan BB-

Standard & Poor's said it assigned its B corporate credit rating to Grand Circle Holdings LLC.

The outlook is stable.

At the same time, S&P said it assigned its issue-level and recovery ratings to the company's planned $170 million senior secured second-lien term loan due 2014, adding that the issue-level rating is BB- with a recovery rating of 1.

In addition to the second-lien term loan, the company plans to issue a $170 million senior secured first-lien credit facility (unrated), which consists of a $30 million revolver and a $140 million first-lien term loan due in 2014, as well as $150 million of junior subordinated notes due 2015, S&P noted, adding that proceeds will be used to finance Court Square Capital Partners' purchase of a portion of the company from current owner Alan Lewis and his related interests.

The B corporate credit rating on Grand Circle reflects the company's high debt leverage as a result of the pending transaction and a low EBITDA margin when compared with that of most other rated leisure industry businesses, S&P said.

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