S&P rates ACCO loans BB+

Standard & Poor's said it assigned a BB+ rating and 1 recovery rating to ACCO Brands Corp.'s $780 million senior secured credit facilities due May 2018.

The BB+ rating is two notches above the BB- corporate credit rating on ACCO. The 1 recovery rating indicates 90% to 100% expected default rating.

On May 13, the company entered into an amended and restated agreement to prepay the existing term loan B due 2019 and replace the existing term loan A due May 2017 with a new $530 million term loan A due May 2018.

The existing $250 million revolving credit facility due 2017 was replaced with a $250 million revolving credit facility due 2018.

Under the restated agreement, ACCO will be required to maintain a fixed-charge coverage ratio and maximum consolidated leverage ratio, S&P said.

All of the company's existing ratings, including the BB- corporate credit rating, remain unchanged. The outlook is stable.

The ratings reflect the company's weak business risk profile and aggressive financial risk profile, S&P said.

The company benefits from a large portfolio of branded products; however, ongoing sensitivity to cyclical demand, high unemployment and private-label competition are principal constraining factors in its business risk assessment, the agency said.

© 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.