S&P cuts Oriental Trading view to negative

Standard & Poor's said it revised its outlook on Oriental Trading Co. Inc. to negative from stable and affirmed its ratings on the direct marketer, including the B+ corporate credit rating.

S&P said the outlook revision reflects increased leverage in the capital structure stemming from a proposed dividend distribution to shareholders, diminished financial flexibility, and S&P's concern regarding an increasingly aggressive financial policy.

Oriental Trading plans to amend its $280 million senior secured term loan B and $80 million second-lien term loan to allow for the issuance of a $30 million and $42 million add-on to these facilities, respectively. Proceeds from the add-ons, along with about $30 million in cash, will be used to pay a $100 million dividend to shareholders.

S&P rates the senior secured bank loan B+ and the second-lien bank loan B-.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.