S&P: California Pizza loan B

Standard & Poor's said it assigned a B corporate credit rating to California Pizza Kitchen Inc.

The agency also said it assigned a B rating to the company's senior secured first-lien credit facility, which consists of a $260 million six-year term loan and a $30 million five-year revolver.

The recovery rating is 3, indicating 50% to 70% recovery in a default.

The outlook is stable.

Private-equity firm Golden Gate Capital used the proceeds from the term loan, along with proceeds from an unrated $75 million second-lien term loan and a $150 million equity contribution to purchase California Pizza.

The ratings reflect an expectation that the company's financial profile will evolve to highly leveraged, S&P said.

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