S&P rates Advantage Solutions loan, notes B-

S&P said it assigned B- ratings to Advantage Solutions Inc., its proposed first-lien loans and senior unsecured notes. The company, which is the parent of Advantage Sales & Marketing Inc., will be the financial reporting entity going forward.

The company is going to refinance the capital structure with proceeds from a $350 million asset-based revolver ($100 million drawn at close), a $1.525 billion senior secured first-lien dollar term loan, a $300 million senior secured first-lien euro term loan, $345 million of senior secured notes and $800 million of senior unsecured notes. The financial sponsor owners will contribute an added $200 million in common equity. Besides the B- ratings on the loans, S&P assigned 3 recovery ratings to the loans and a CCC rating with a 6 recovery rating to senior unsecured notes.

S&P revised the outlook to positive on the proposed refinancing. “The outlook revision to positive from negative reflects our view that the proposed refinancing will strengthen ASM's credit profile, as it addresses the company's nearing debt maturities and is modestly deleveraging. The equity contribution from ASM's financial sponsor owners gives us greater confidence that the deal will close with satisfactory terms,” said S&P in a press release.

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