S&P: ACCO Brands unchanged

Standard & Poor's said its BB- issue-level and recovery ratings on ACCO Brands Corp.'s senior secured notes due 2015 remain unchanged following a $35 million upsize on the notes for a new total principal amount outstanding of $460 million.

Net proceeds of the issue, along with borrowings under a proposed new multicurrency $175 million asset-based revolving credit facility (unrated), will be used to refinance and replace its existing senior secured credit facilities and accounts receivable securitization program (unrated) and pay transaction and related costs.

"Although this transaction addresses our prior concern about the company's ability to maintain adequate cushion on its existing bank financial covenants in the second half of 2009, given the seasonal nature of ACCO's business, along with our continued concerns about the continuing effects of the weak economic environment on the company's operating results, we believe it could result in credit measures that may weaken from current levels," said S&P credit analyst Jean C. Stout in a news release.

S&P said it could lower the ratings on ACCO if leverage increases further.

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