In conjunction with the dividend recapitalization of Winston-Salem, N.C.-based Inmar Inc., Standard & Poor's Ratings Services has assigned preliminary recovery and issue-level ratings to the company's revolver and term loan. Our simulated default scenario contemplates a default in 2014 due to a steep decline in revenue and income as customers bring functions in-house or aggressively renegotiate current contracts to control costs in a challenging economy. We believe the company would reorganize in the event of a default because of its leading market position in the complementary reverse logistics and promotions services industries. Inmar's proposed capital structure will consist of a $240 million senior secured credit facility, bifurcated between a $30 million revolving credit facility due 2016 and a $210 million...
Companies mentioned in this report are: Inmar Inc.
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