S&P rates Atlantis Plastics loan B, notes CCC+

Standard & Poor's said it assigned its B corporate credit rating to Atlantis Plastics Inc. At the same time, S&P assigned its B rating and its recovery rating of 2 to the company's proposed $25 million senior secured revolving credit facility due 2010 and $80 million senior secured term loan B due 2011.

S&P also assigned its CCC+ rating to the company's proposed $125 million senior subordinated notes due 2012.

Proceeds from the transaction will be used to refinance the company's existing credit facilities, to fund a $118 million dividend to shareholders and for fees and expenses. The outlook is stable.

S&P said the ratings on Atlantis Plastics reflect a very aggressive financial profile, which overshadows its well-below-average business risk profile in highly competitive, cyclical polyethylene film and injection-molded plastic products, serving mainly industrial customers.

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