S&P: Atrium loans B+, CCC+

Standard & Poor's said it assigned a B long-term corporate credit rating to Atrium Innovations Inc.

The agency also said it assigned a B+ rating and 2 recovery rating to Atrium's proposed $75 million senior secured first-lien revolving credit facility due 2019, $300 million senior secured first-lien term loan due 2021 and $125 million senior secured first-lien term loan due 2021.

The 2 recovery rating indicates 70% to 90% expected default recovery.

S&P also said it assigned a CCC+ rating and 6 recovery rating to Atrium's proposed $200 million senior secured second-lien term loan due 2021.

The 6 recovery rating indicates 0% to 10% expected default recovery.

The outlook is stable.

The debt will be initially issued by the newly created interim company, Acquisition Glacier Inc., which is expected to be merged with Atrium post-closing. Atrium will be the surviving entity, S&P said.

The ratings reflect the company's weak business risk profile and highly leveraged financial risk profile, the agency said.

Key credit factors include the company's position as a niche player in the highly fragmented and competitive vitamin, mineral and supplement industry, along with significant dependence on a couple of key brands, S&P said.

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