S&P assigns B to KC Culinarte, loans

S&P said it assigned its B long-term issuer credit rating on KC Culinarte Holdings LP and KC Culinarte Intermediate, LLC.

The outlook is stable.

At the same time, the agency assigned its B issue rating to the company's proposed $50 million revolving credit facility due 2023 and $240 million first-lien term loan maturing in 2025. S&P assigned a 3 recovery rating on the facilities, indicating an expectation for meaningful recovery (50%-70%; 60% rounded estimate) in the event of a payment default.

Kainos Capital is merging two of its portfolio companies, Kettle Cuisine LLC and Bonewerks Culinarte. The consolidated company will be KC Culinarte.

“The ratings on KC Culinarte (KC) reflect the company's small scale and narrow product focus in the private-label, refrigerated and frozen soup category, and its high leverage above 6x at the close of the transaction,” S&P said in a news release.

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