S&P rates Vistaprint loans BB, notes B

Standard & Poor’s said it assigned Vistaprint NV a BB- corporate credit rating. The outlook is stable.

At the same time, S&P assigned the company’s secured credit facility (consisting of a $690 million revolving credit facility and a $160 million term loan A) a BB issue-level rating credit rating, with a recovery rating of 2, indicating an expectation for substantial recovery (70% to 90%) in the event of a payment default.

In addition, the agency assigned the company’s proposed $250 million senior unsecured notes a B issue-level rating, with a recovery rating of 6, indicating an expectation for negligible recovery (0% to 10%) in the event of a payment default.

S&P said the BB- rating assigned to Vistaprint reflects the company’s niche market position as an e-commerce provider of small order, customized paper and non-paper marketing materials, solid EBITDA margin and free operating cash flow generation, and S&P’s expectation that leverage will remain below 4x despite the company’s intended acquisition strategy.

S&P said it views the company’s business risk profile as “weak” and the financial risk profile as “significant.”

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