Cott Corp. has signed a definitive agreement to acquire privately held Dunkirk, N.Y.-based Cliffstar Corp., the leading North American private label manufacturer of shelf stable juices. Following our analysis of this proposed transaction, Standard&Poor's affirmed its 'B' long-term corporate credit rating on Cott. Cott expects to issue US$375 million senior unsecured notes due 2018 through its wholly owned U.S. subsidiary, Cott Beverages Inc., to which we are assigning a 'B' debt rating, and '4' recovery rating. The company intends to use the net proceeds of the proposed notes, as well as the issuance of common equity and a drawdown of the revolving credit facility, to finance the Cliffstar transaction. We are also affirming the 'B' debt rating on
