S&P: Sagittarius unchanged after add-on

Standard & Poor's said the ratings on Sagittarius Restaurants LLC, including its B corporate credit rating and B rating on the company's first-lien term loan due 2018, are unchanged following the $10 million increase in the amount of the term loan add-on to $62 million.

The outlook is stable.

The total amount of the first-lien term loan is $220 million. The recovery rating on the credit facility is unchanged at 3, indicating 50% to 70% expected default recovery.

The proceeds will be used to repay $62 million of payment-in-kind subordinated notes, S&P said.

The ratings reflect the company's weak business profile and highly leveraged financial risk profile, the agency said.

The proposed transaction is leverage neutral and modestly improves EBITDA interest coverage to about 2.2x from 1.7x in 2013, S&P said.

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