S&P: Merisant on watch

Standard & Poor's said its ratings on Merisant Worldwide Inc. (formerly Tabletop Holdings Inc.) and its wholly owned subsidiary Merisant Co. remain on CreditWatch with negative implications, where they were placed on May 10. This includes Merisant Worldwide's B+ corporate credit and B- senior subordinated debt ratings and Merisant Co.'s B+ corporate credit rating, B+ senior secured bank loan rating, and B- senior subordinated debt rating.

The original CreditWatch placement followed Merisant Worldwide's S-1 filing with the Securities and Exchange Commission for an initial public offering of income deposit securities (IDS), representing new shares of common stock and new senior subordinated notes.

In connection with this offering, Merisant Worldwide is expected to tender for all of its outstanding senior subordinated discount notes due 2014 and Merisant Co.'s outstanding senior subordinated notes due 2013. Merisant Worldwide will also repay all outstanding borrowings on Merisant Co.'s senior secured credit facilities.

If the IDS offering closes in accordance with the terms and conditions presented in Merisant Worldwide's amendment No. 1 to the form S-1 registration statement, S&P said it expects to lower its corporate credit ratings on Merisant Worldwide and Merisant Co. to B from B+. This would reflect S&P's opinion that the IDS structure reflects a more aggressive financial policy.

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