S&P rates EuroFresh loan

Standard & Poor's said it assigned its B corporate credit rating to Willcox, Ariz.-based fresh produce company EuroFresh Inc. At the same time, S&P assigned its B+ bank loan rating and its 1 recovery rating to the company's proposed $20 million first-priority senior secured bank loan due 2009.

In addition, S&P assigned its CCC+ bank loan rating and its 4 recovery rating to the company's proposed $100 million second-priority senior secured bank loan due 2010.

Proceeds from the new bank loans will be used to refinance the company's existing debt of about $63.4 million and to redeem about $33.6 million of the company's outstanding series A preferred stock.

The outlook is stable.

S&P said the ratings on EuroFresh reflect its narrow business focus, limited size, customer concentration, and leveraged financial profile. Somewhat mitigating these factors are the company's leading position in the niche greenhouse segment of the fresh tomato produce category and its strong EBITDA margins.

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