S&P rates Evenflo loans B-, CCC

Standard & Poor's said it assigned its B- corporate credit rating to WP Evenflo Holdings Inc., which is a parent company of Evenflo Co. Inc. The agency also assigned a B- rating with a recovery rating of 2 to its $160 million senior secured first-lien credit facility (consisting of a $120 million term loan and a $40 million revolving credit facility), along with a CCC rating with a recovery rating of 5 on its $45 million second-lien term loan. These facilities are guaranteed by all of Evenflo's domestic subsidiaries, including Evenflo Co. Inc.

The outlook is positive.

Net proceeds, along with about $103 million of common and preferred stock, were used to help fund the acquisition of Evenflo by Weston Presidio for $268 million. Evenflo has about $165 million in total funded debt outstanding as a result of the completed transaction, S&P said.

The rating reflects the company's highly leveraged capital structure, low operating margins for a branded consumer products company, potential for adverse publicity for its specialty infant and juvenile product sales and past operating difficulties, the agency said.

Somewhat offsetting these factors, S&P added, are the company's leading market position and good industry demographics within select categories of the specialty infant and juvenile products industry.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.