S&P gives Edward Don, loan B

S&P said it assigned its B corporate credit rating to Edward Don & Co. Holdings LLC. The outlook is stable.

At the same time, the agency assigned a B issue-level rating to the proposed $210 million senior secured first-lien term loan due in 2025. The recovery rating is 4, indicating an expectation for average (30%-50%, rounded estimate 45%) recovery in the event of a default.

S&P said the ratings on Edward Don reflect its high debt leverage, narrow business focus, small scale, limited geographic diversification and focus in the mature and highly fragmented foodservice equipment and supplies distribution industry.

The ratings also consider Edward Don's national distribution platform, relatively stable business with a highly recurring revenue stream and high customer retention rates, the agency added.

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