S&P gives Orchard loans B, CCC+

Standard & Poor's said it assigned its B corporate credit rating to Orchard Brands Corp.

The outlook is stable.

At the same time, S&P assigned its B issue-level rating and a 4 recovery rating to the company's proposed $180 million first-lien term facility.

The agency also assigned its CCC+ issue-level rating and a 6 recovery rating to Orchard Brands' proposed $50 million second-lien term facility.

"We expect the company to use proceeds from the new facilities and cash on its balance sheet to refinance all of its existing debt," S&P credit analyst Kristina Koltunicki said in a news release.

"The ratings on Orchard Brands reflect our assessment of the company's 'vulnerable' business risk profile and 'highly leveraged' financial risk profile," Koltunicki added in the release.

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