S&P rates Ferrara Candy loan B, CCC+

S&P said it affirmed the B corporate credit rating on Ferrara Candy Co.

The agency also said it assigned a B rating to the company's proposed $500 million first-lien term loan due in 2023 with a 4 recovery rating, indicating 30% to 50% expected default recovery.

S&P also said it assigned a CCC+ rating to the company's proposed $150 million second-lien term loan due in 2023 with a 6 recovery rating, indicating 0 to 10% expected default recovery.

The outlook is stable.

The proceeds will primarily be used to refinance the existing term loan and to pay a special dividend to the company's owners, the agency said.

The ratings reflect an expectation that, despite higher pro forma leverage from its pending dividend recapitalization, operating performance and cash flow ratios will continue to improve following a period of significant investment in restructuring the business, S&P said.

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