S&P rates Distribution International loan B-

Standard & Poor's said it assigned its B- corporate credit rating to Distribution International Inc.

The outlook is stable.

At the same time, the agency assigned its B- issue-level rating (same as the corporate credit rating) to the company's $200 million senior secured term loan due 2019. The recovery rating is 4, indicating an expectation of average (30% to 50%) recovery for lenders in the event of a payment default.

The company also has an $80 million asset-based lending facility due 2018, which is not rated.

Distribution International used the proceeds to refinance $153 million of existing debt, finance an acquisition, fund a special dividend to equity holders of about $40 million and pay estimated fees and expenses in connection with the financing.

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