S&P: Arctic Glacier add-on B-

Standard & Poor’s said it assigned a B- rating and 3 recovery rating to Arctic Glacier LLC’s proposed $35 million add-on to the company’s first-lien term loan due 2019.

A 3 recovery rating indicates 50% to 70% expected default recovery.

Once the transaction closes, S&P said it believes Arctic Glacier’s liquidity would improve ahead of its seasonal peak in working capital in the second quarter.

The proceeds will be used to repay its revolver and add cash to the balance sheet, which supports the company’s liquidity, the agency said.

The ratings reflect the company’s very high debt leverage, S&P said.

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