S&P: Advantage Sales unchanged after refinancing

Standard & Poor's said the B+ corporate credit rating and stable outlook on Advantage Sales & Marketing Inc. remain unchanged following the announced refinancing transaction.

The company intends to increase its existing $907.5 million first-lien secured term loan by $90 million and its existing $300 million second-lien secured term loan by $30 million in order to repay its $110 million mezzanine debt.

The transaction is nearly neutral to credit metrics, S&P said.

The B+ rating and 4 recovery rating on the first-lien secured term loan due December 2017 remain unchanged.

The 4 recovery rating indicates 30% to 50% expected default.

The B- issue rating and 6 recovery rating on the second-lien secured term loan due June 2018 also remain unchanged. The 6 recovery rating indicates 0% to 10% expected default recovery.

The ratings reflect the company's fair business risk profile and highly leveraged financial risk profile, S&P said.

The ratings also consider the favorable industry dynamics and a belief that Advantage will increase sales and profits as consumer packaged goods producers will increase outsourcing of sales and marketing functions, the agency said.

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