SRS Distribution Inc. 'B' Rating Affirmed On Incremental Debt Add-On, Outlook Stable; First-Lien Recovery Revised To '3'

U.S.-based SRS Distribution Inc. plans to issue an incremental $140 million first-lien term loan add-on and an incremental $40 million second-lien term add-on to fund a $175 million dividend to its owners. The first-lien term loan add-on will increase the balance of SRS's existing $572 million (original loan amount) first-lien term loan due 2022 to approximately $708 million outstanding. The second-lien term loan add-on will increase SRS's existing $130 million first-lien term loan due 2023 to approximately $170 million. We are affirming our 'B' corporate credit rating on SRS. At the same time, we are affirming our 'B' issue-level rating on the company's first-lien term loan, as well as our 'CCC+' issue-level rating on the company's second-lien term loan. We

...+ U.S.-based SRS Distribution Inc. plans to issue an incremental $140 million first-lien term loan add-on and an incremental $40 million second-lien term add-on to fund a $175 million dividend to its owners. + The first-lien term loan add-on will increase the balance of SRS's existing $572 million (original loan amount) first-lien term loan due 2022 to approximately $708 million outstanding. The second-lien term loan add-on will increase SRS's existing $130 million first-lien term loan due 2023 to approximately $170 million. + We are affirming our 'B' corporate credit rating on SRS. At the same time, we are affirming our 'B' issue-level rating on the company's first-lien term loan, as well as our '###+' issue-level rating on the company's second-lien term loan. + We are revising the recovery rating on the first-lien term loan to '3' from '4'. The recovery rating on the second-lien term loan remains '6'. + Our stable outlook reflects our view that SRS will maintain above-average margins...

Ratings Action