S&P puts Varsity Brands on watch

S&P said it placed all of its ratings on Varsity Brands Holding Co. Inc., including the B corporate credit rating and B issue-level ratings on the first-lien term loan, on CreditWatch with negative implications.

The CreditWatch placement follows Bain Capital's announcement that it will acquire Varsity Brands from Charlesbank Partners LLC for an undisclosed amount.

Varsity Brands' current debt is transferable at the time of sale to a financial sponsor if the sale meets specific requirements relating to leverage and equity contribution, S&P noted in a news release.

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