S&P gives B to Lineage loan

Standard & Poor's said it affirmed its B corporate credit rating on Lineage Logistics LLC.

The outlook is stable.

At the same time, the agency assigned its B issue rating and 3 recovery rating to the company's $600 million senior secured first-lien term loan B due 2021. The 3 recovery rating indicates an expectation that lenders would receive meaningful recovery (50%-70%) of principal in a payment default scenario.

S&P said the actions reflect its view that Lineage Logistics' acquisition of Millard Refrigerated Services Inc., will result in an improved competitive position as well as a substantial increase in debt. Pro forma for the transaction, credit metrics weaken, with debt to EBITDA increasing to about 9x and funds from operations to debt falling to the high single-digit-percentage area, the agency said.

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