...NEW YORK (S&P Global Ratings) Sept. 26, 2016--S&P Global Ratings today affirmed its 'B' issue-level rating on SRS Distribution Inc.'s first-lien debt and revised its recovery rating on the debt to '4' from '3' following the company's announcement that it is planning to issue a $100 million incremental first-lien term loan. The '4' recovery rating indicates our expectation that lenders would receive average recovery (30%-50%; upper half of the range) of their principal in the event of a payment default. The company plans to use the proceeds from the incremental loan to prepay $60 million on its asset-based lending (ABL) facility and for general corporate purposes, including potential acquisitions. The first-lien term loan add-on will increase the outstanding balance on SRS' existing first-lien term loan due 2022 to $569 million ($572 million issue amount). At the same time, we affirmed our '###+' issue-level rating on SRS' $130 million second-lien term loan due 2023. The '6' recovery rating...
