S&P cuts Wm. Bolthouse loan to B

Standard & Poor's said it lowered Wm. Bolthouse Farms Inc.'s proposed new first-lien senior secured credit facility, which consists of a $55 million revolving credit facility due 2015 and a $550 million first lien term loan due 2016, to B, the same as the corporate credit rating, from B+ and revised the recovery rating to 3 from 2.

The CCC+ rating on Bolthouse's proposed new $175 million second-lien senior-secured term loan facility due 2016 remain unchanged with 6 recovery rating.

"These rating revisions reflect an increase in the proposed size of this new first-lien term loan to $550 million from the previously proposed $500 million, and a corresponding decrease in the proposed size of the new second-lien term loan to $175 million from the previously proposed $225 million. In addition, the revolver has been reduced to $55 million, from the previously proposed $65 million," S&P analyst Alison Sullivan said in a statement.

Ratings reflect the company's narrow focus on carrots and super-premium natural beverage categories, its high debt leverage and its participation in the highly competitive vegetable, beverage and salad dressing industries, the agency said.

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