S&P: Sales & Marketing loans B

S&P said it assigned a B rating to Advantage Sales & Marketing Inc.'s proposed $225 million senior secured first-lien term loan and $200 million revolving credit facility due 2021 with a 3 recovery rating, reflecting 50% to 70% expected default recovery.

The B rating and 3 recovery rating on the company's existing senior secured first-lien term loan are unchanged, the agency said.

The proceeds will be used to fund acquisitions and repay the outstanding balance on its revolver, S&P said.

The ratings assume the transaction closes on substantially the terms provided, the agency said.

All of the company's existing ratings, including its B corporate credit rating and CCC+ senior secured second-lien term loan rating, are unchanged by the transaction.

The outlook remains positive.

The ratings consider the company's leading position in the outsourced sales and marketing industry, S&P said.

The company is expected to grow its market share since it is a highly efficient operator with a national footprint that serves large consumer products companies, the agency said.

Outsourced sales and marketing firms are generally more cost-effective for consumer products companies than retaining this function entirely in-house, S&P said.

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