S&P affirms Advantage Sales

Standard & Poor’s said it affirmed its B corporate credit rating on Advantage Sales & Marketing Inc. The outlook remains stable.

At the same time, S&P affirmed the B issue-level ratings on the company’s $200 million first-lien revolving credit facility due in 2019 and $2.01 billion first-lien term loan due in 2021.

The recovery ratings are unchanged at 3, though S&P revised the recovery band to the upper half of the range from the lower half. The 3 recovery ratings indicate an expectation for meaningful recovery (50%-70%; upper half of the range) of principal in the event of a payment default.

S&P also affirmed the CCC+ issue-level rating on the company's $760 million second-lien debt due in 2022. The 6 recovery rating is unchanged, indicating an expectation for negligible recovery (0%-10%) of principal in the event of a payment default.

“The rating affirmations reflect our view that ASM will continue to perform in line with our expectations, with low-single-digit organic revenue growth supplemented by bolt-on acquisitions,” said S&P credit analyst Katherine Heng in a news release. “However, we expect ASM’s credit measures to remain weak under its financial sponsor ownership and its leverage to improve modestly to the mid-7x area, driven by modest sales and profit growth.”

© 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.