NEW YORK (Standard&Poor's) Dec. 22, 2010--Standard&Poor's Ratings Services said today that Harbor Freight Tools Inc.'s (HFT; B+/Stable/--) term loan reduction does not affect our bank loan or recovery ratings on the company's debt. HFT is reducing its term loan to $650 million from $750 million. The '4' recovery rating on the $675 million bank facility, which includes a $25 million revolver, indicates our expectation for an average (30%-50%) recovery of principal in the event of a payment default. The company intends to use the proceeds from the proposed debt issuance, along with available cash, to refinance existing debt and pay about $235 million dividend to its shareholders. The proposed dividend recapitalization results in pro forma total
