S&P rates EveryWare loan B

Standard & Poor's said it assigned a B corporate credit rating to EveryWare Inc., along with a B rating to its $150 million senior secured term loan due 2017.

The recovery rating is 3, indicating 50% to 70% expected recovery in a default.

The company also has a $75 million asset-based revolving credit facility due in 2017 that is unrated.

The proceeds will be used to fund a dividend to its shareholders, retire existing debt at Anchor Hocking LLC and Oneida Ltd. and to cover fees and expenses, S&P said.

The outlook is stable.

The ratings reflect the company's highly leveraged financial risk profile, given the significant debt obligations following the merger and its aggressive financial policy of seeking acquisitions and paying dividends to its owners, S&P said.

Based on the company's small EBITDA base and heavy debt burden, the agency said it believes the company's credit metrics will deteriorate quickly if it incurs operating difficulties.

© 2015 Prospect News.
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