S&P affirms Ollie's after add-on

Standard & Poor's said it affirmed the B rating on Ollie's Holdings Inc.'s and wholly owned subsidiary Ollie's Bargain Outlet Inc.'s existing term loan due 2019 following a $60 million add-on to the original $275 million amount.

The 4 recovery rating is unchanged.

S&P also said it affirmed the B corporate credit rating on Ollie's Holdings.

The outlook remains stable.

The proceeds will be used to fund a dividend to shareholders and pay related fees and expenses.

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

The ratings also consider the company's position as a smaller regional player in the highly competitive and fragmented close-out industry, the agency said.

The company is expected to continue pursuing a high-growth strategy over the next year with geographic expansion through new stores, S&P said.

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