S&P alters Ocean Spray view to negative

S&P said it changed its outlook for Ocean Spray Cranberries Inc. to negative from stable and affirmed all its ratings, including the BBB- issuer rating. The agency plans to withdraw Ocean Spray’s preferred share rating once it has been redeemed.

Ocean Spray plans to refinance its capital structure with a seven-year $550 million term loan B and a five-year $415 million revolving credit facility. The company will use the proceeds to refinance debt and redeem its series A preferred stock.

“The negative outlook reflects the risk that credit measures could remain weaker than expected if macroeconomic conditions worsen and the company's efforts to offset input cost inflation do not take hold. We estimate pro forma leverage at transaction close will be in the high-3x area and expect it to remain above 3x over the next year. The company's weakened credit measures are a result of lower profitability in recent quarters, higher member distributions in fiscal 2022 due to a timing issue, and modestly higher adjusted debt after the transaction closes,” S&P said in a press release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.