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S&P: Otter Products loan B+
Standard & Poor's said it assigned a B+ corporate credit rating to Otter Products LLC.
The agency also said it assigned B+ ratings to the company's proposed $400 million senior secured term loan due 2019. The recovery rating is 3, which indicates 50% to 70% expected default recovery.
The company also has an unrated $150 million asset-based revolving credit facility due 2016, which may be extended to 2018.
The outlook is stable.
The company will use net proceeds from the transaction to purchase TreeFrog Developments Inc. and to refinance existing debt balances.
The transaction is expected to close in May 2013.
The ratings reflect the company's aggressive financial risk profile and weak business risk profile, the agency said.
The financial policy is considered aggressive due to the 100% ownership by the Richardson family and the potential for high discretionary payments to members, S&P said.
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