S&P rates American Seafoods loans BB-, B-

S&P said it assigned ratings to American Seafoods Group LLC's new senior secured credit facilities, comprising a $60 million revolver, a $565 million first-lien term loan and a $150 million second-lien term loan.

S&P assigned a BB- issue rating to the revolver and first-lien term loan, with a recovery rating of 1, indicating an expectation for very high recovery (90%-100%, rounded estimate 95%) of principal and prepetition interest in the event of a payment default. At the same time, S&P assigned a B- issue rating to the second-lien term loan, with a recovery rating of 5, indicating an expectation for a modest recovery (10%-30%, rounded estimate 25%) of principal in the event of a payment default.

The new facility is part of a refinancing that will increase the size of the first-lien term loan by about $68 million and reduce the second-lien term loan by $50 million, reduce interest costs, improve pricing, and extend the maturity of the facilities an additional one to two years.

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