S&P rates Riddell Bell loan BB-, notes B-

Standard & Poor's said it assigned a B+ corporate credit rating to Riddell Bell Holdings Inc., a new entity formed from the combination of Riddell Sports Group Inc. and Bell Sports Corp. A series of debt offerings will be used to help finance the acquisition of Bell Sports and repay existing debt at Riddell Sports Group, a subsidiary of the newly formed entity.

An investor group led by financial sponsor Fenway Partners Inc. will make a $69 million common equity contribution to help fund the transaction and then own the new company.

S&P assigned a BB- senior secured bank loan and 1 recovery rating to Riddell Bell's planned $160 million senior secured bank facility. S&P also assigned a B- rating to Riddell Bell's planned $140 million senior subordinated note offering due 2012.

The outlook is negative.

S&P said the ratings reflect the new entity's high debt leverage. They also reflect Riddell Bell's participation in the highly competitive sporting goods industry, its narrow product focus, its customer concentration, and the risks of integrating the two operations. These risks are mitigated somewhat by the company's leading market positions in football and bike helmets and related accessories.

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