S&P rates AMF Bowling loans B+, CCC+

S&P said it affirmed its B corporate credit rating on Bowlmor AMF Corp.

The outlook is stable.

At the same time, the agency assigned a B+ issue-level rating and 2 recovery rating to subsidiary AMF Bowling Centers Inc.'s proposed $470 million first-lien term loan and $30 million revolver. The 2 recovery rating indicates an expectation for substantial (70% to 90%; lower end of the range) recovery for lenders in the event of a payment default.

S&P also assigned a CCC+ issue-level rating and 6 recovery rating to the subsidiary's $130 million second-lien term loan. The 6 recovery rating indicates an expectation for negligible (0% to 10%) recovery for lenders in the event of a payment default.

Bowlmor plans to use the proceeds from the term loans to repay its existing term loan balances, to offer to acquire about $175 million of shares from all shareholders on a pro-rata basis (excluding CEO Tom Shannon), to pay transaction fees and expenses and to add a modest amount of cash to the balance sheet.

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