S&P: Otis Spunkmeyer on positive watch

Standard & Poor's said it placed its ratings on Otis Spunkmeyer Inc. on CreditWatch with positive implications.

The agency said that this includes the B+ corporate credit rating and bank loan rating on the company. CreditWatch with positive implications means that the ratings could be affirmed or raised following the completion of the review.

S&P noted that the CreditWatch placement follows the company's announcement that it has entered into an agreement to be acquired by IAWS Group plc (unrated) for about $561 million enterprise value, including $340 million equity consideration, plus up to $25 million in additional payments for the achievement of certain performance milestones.

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