S&P assigns LSF 5, loan B

Standard & Poor's said it assigned its B corporate credit rating to LSF 5 Wagon Investments LLC.

The outlook is negative.

At the same time, S&P said it assigned its B rating to the company's planned $110 million term loan B and $20 million revolving credit facility with a 3 recovery rating.

The proceeds of the loan will predominately be used to repay existing debt and pay fees associated with the transaction, the agency said.

According to S&P, the ratings on LSF 5 reflect the company's small size in the highly competitive fine-dining steakhouse segment of the restaurant industry, the likelihood that the company will not generate positive free operating cash flows in the near future and its significantly leveraged capital structure.

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