S&P rates Centerplate loan B

Standard & Poor's said it assigned a B rating to Centerplate Inc.'s proposed $420 million senior secured facility composed of a $75 million revolver and $345 million of term debt.

The co-borrower is KPLT Holdings Inc.

The recovery rating on this debt is 3, indicating 50% to 70% expected default recovery.

The proceeds will be used to refinance about $297 million of outstanding debt under its existing senior secured credit facility and to pay down about $40 million of its mezzanine debt.

This transaction is largely leverage neutral and the company will be able to lower its overall cost of capital, S&P said.

The company's multi-year customer contracts support relatively stable operating performance, the agency said.

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