S&P rates FR Brand loans B, CCC+

Standard & Poor's said it assigned new ratings to FR Brand Acquisition Corp.'s (B/negative) revised $1.03 billion first- and second-lien senior secured bank credit facilities.

The changes to the facilities consist of: shifting $25 million of the $150 million first-lien revolving credit facility to a new first-lien synthetic LOC facility, shifting $50 million of the second-lien term debt to the first-lien term loan, all of which will now be issued in the United States, dividing the second-lien term loan into a $120 million tranche issued by FR Brand and a $180 million tranche issued by Aluma Systems Inc., the agency noted.

FR Brand's $125 million first-lien revolver, $25 million first-lien LOC facility and $580 million first-lien term loan are rated B with a recovery rating of 3, while its $120 million second-lien term loan is rated CCC+ with a recovery rating of 5, the agency added.

Aluma Systems Inc.'s $180 million second-lien term loan is rated B with a recovery rating of 2, indicating an expectation of substantial recovery of principal, S&P noted.

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