S&P: Appvion loans B+, CCC+

Standard & Poor's said it assigned its B+ issue-level rating and 2 recovery rating to Appvion Inc.'s proposed $375 million first-lien term loan due 2019.

The agency also assigned its CCC+ issue-level rating and 6 recovery rating to the proposed $200 million second-lien term loan due 2020.

In addition, S&P said it revised the outlook on the B corporate credit rating to positive from stable and affirmed the rating.

"We revised our outlook to positive to reflect our view that cost savings in the coated paper segments and gradual growth in the encapsulation segment will drive higher EBITDA margins, potentially dropping leverage to less than 5x EBITDA over the next 12 months. The outlook revision also reflects our view that the proposed refinancing transactions alleviate near-term refinancing risk and provide a more flexible capital structure that allows ongoing debt repayment from free cash flow," S&P credit analyst James Fielding said in a news release.

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