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S&P rates EveryWare loan B
Standard & Poor's said it affirmed the B corporate credit rating on EveryWare Inc.
The agency also said it assigned a B rating to EveryWare's $250 million senior secured term loan due 2020.
Anchor Hocking LLC and Oneida Ltd. are the borrowers.
The recovery rating is 4, indicating 30% to 50% expected default recovery. The company also proposed a $50 million asset-based revolving credit facility due in 2018.
The outlook is stable.
EveryWare is expected to merge with ROI Acquisition Corp., a special-purpose acquisition company, and following the completion of the transaction will be a publicly traded company and renamed EveryWare Global Inc., S&P said.
The proceeds from the financing and new equity from ROI will be used to purchase a portion of equity from existing owners, retire existing debt at Anchor Hocking and Oneida, and to cover fees and expenses, the agency said.
Monomoy Capital Partners will remain the majority owner following the merger.
The agency said it will withdraw the ratings on EveryWare's existing credit facilities upon completion of the transaction and repayment of this debt.
The ratings reflect the company's highly leveraged financial risk profile given its significant debt obligations following the merger with ROI Acquisition and concurrent refinancing, the agency said.
The ratings also consider its very aggressive financial policy of seeking acquisitions and past dividends to its owners, S&P said.
Based on the company's small EBITDA base and high debt levels, the agency said it believes its credit metrics will weaken following the completion of this transaction.
The ratings also incorporate the company's narrow product portfolio, participation in the mature and highly competitive glassware, dinnerware, bakeware, serveware and flatware categories and its exposure to commodity costs, S&P said.
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