S&P cuts Give and Go term loan to B

S&P said it lowered its issue-level rating on Give and Go Prepared Foods Corp.'s first-lien senior secured term loan and revolver to B from B+ and revised the recovery rating to 3 from 2. The 3 recovery rating reflects an expectation of meaningful (50%-70%, rounded estimate 60%) recovery in the event of default.

The B long-term corporate credit rating and stable outlook are unchanged.

S&P said the ratings on Give and Go reflect the company's relatively high leverage given the financial sponsors' willingness to fund dividends through debt. This is partially offset by relatively high margins for the packaged food category and unchanged interest payments given a lower expected coupon rate.

© 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.