S&P applies B to Focus Brands facilities

S&P said it assigned its B issue-level rating and 3 recovery rating to Focus Brands Inc.'s $625 million first-lien secured credit facilities, consisting of a $600 million term loan and $25 million revolving credit facility.

The 3 recovery rating indicates an expectation that lenders would receive meaningful recovery (50%-70%, upper half of the range) of their principal in the event of a payment default.

This follows a leverage-neutral refinancing to extend the company's maturity schedule, simplify its capital structure and lower its overall cost of capital.

Proceeds from the new facilities will be used to repay all borrowings under the existing first- and second-lien term loans.

All other ratings, including the B corporate credit rating and stable outlook, are unchanged.

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