S&P affirms Cenveo, rates loan B+

Standard & Poor's said it affirmed its B+ corporate credit rating on Cenveo Inc. and assigned its bank loan and recovery ratings to subsidiary Cenveo Corp.'s proposed $925 million senior secured credit facility, comprising a $200 million revolver due 2013, a $600 million term loan due 2014 and a $125 million delayed-draw term loan due 2014.

The facility was rated B+ with a recovery rating of 2, indicating the expectation for substantial recovery of principal in the event of a payment default, the agency noted.

The facility is secured by a first-priority security interest in substantially all the assets of Cenveo, its parent and its subsidiaries, the agency said, adding that proceeds from the proposed term loans will be used to fund the purchase of equity at Cadmus Communications Corp. and to acquire Printegra Corp., as well as to refinance Cenveo Corp.'s existing term loan and Cadmus' existing debt balances.

At the same time, S&P said it removed all ratings from CreditWatch, where they were placed on Dec. 27, following the company's announcement it would acquire Cadmus Communications Corp.

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