S&P affirms Vi-Jon, rates loan B

Standard & Poor's said it affirmed its B corporate credit rating on Vi-Jon Inc. (formerly rated as

VJCS Acquisition Inc.).

The outlook is stable.

At the same time, S&P said it assigned its bank loan and recovery ratings to Vi-Jon's planned first-lien bank loan facilities, consisting of a $210 million senior secured term loan B facility and a $30 million secured revolving credit facility, adding that the first-lien facilities were rated B with a 3 recovery rating.

Proceeds from the new bank debt will be used to refinance existing bank debt and subordinated mezzanine debt, the agency said.

According to S&P, the ratings on Vi-Jon reflect its participation in the highly competitive personal care segment of the consumer products industry, high debt leverage and customer concentration while these risks are mitigated somewhat by the company's leading position as a private-label manufacturer, its established relationships with key retailers and early success in integrating Cumberland Swan into its operations.

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