S&P: Southern Graphics unchanged, new loan B

Standard & Poor's said the B ratings on Southern Graphics Inc. remain unchanged following a modification of the size of the proposed debt issues.

The B rating and 3 recovery rating on the company's proposed term loan due 2019 also remains unchanged following the decrease to $365 million from $375 million.

The agency also said the CCC+ rating and 6 recovery rating on the company's proposed unsecured notes due 2020 remains unchanged following an increase to $210 million from $200 million.

S&P also said it assigned a B rating with a recovery rating of 3 to the company's unfunded proposed $35 million delayed draw term loan due 2019. The 3 recovery rating indicates 50% to 70% expected recovery in a default.

The delayed draw term loan is available for up to 90 days following the closing date of the transaction to fund the company's proposed acquisition of a regional prepress graphic services competitor, the agency said.

The purchase would not significantly change the company's high pro forma debt leverage, S&P said.

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