S&P: Arctic Glacier loan B

Standard & Poor's said it assigned a preliminary B- long-term corporate credit rating to Arctic Glacier Holdings, Inc., an affiliate of H.I.G. Capital.

The agency also said it assigned a preliminary B rating to Arctic Glacier's proposed $25 million senior secured revolving credit facility due 2017 and $200 million senior secured term loan due 2018.

The recovery rating is 2, indicating 70% to 90% expected recovery in a default.

The outlook is stable.

The ratings reflect the company's vulnerable business risk profile and highly leveraged financial risk profile, S&P said.

The ratings are based on the company's narrow product portfolio, seasonality of demand and participation in the challenging packaged ice industry, which is highly competitive, commoditized, fragmented and susceptible to unfavorable weather and economic conditions, the agency said.

Partially offsetting these factors is Arctic Glacier's solid market position in North America as the second-largest player in the fragmented industry, S&P added.

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