Moody's rates FGX loans B2, B3

Moody's Investors Service said it assigned a B2 corporate family rating to FGX International Ltd. In addition, Moody's assigned ratings to the proposed $215 million senior secured bank credit facilities of which FGX and its subsidiary FGX International, Inc. will be co-borrowers.

Moody's rated the proposed $165 million first-lien senior secured credit facilities at B2, including a $15 million five-year revolver and a $150 million seven-year term loan, and rated the proposed $50 million eight-year second-lien senior secured term loan facility at B3.

The outlook is stable.

According to Moody's, the ratings reflect FGX's long-term customer relationships and leading mass-market positions, particularly in the more stable reading glass business. However, the ratings also recognize the company's limited financial flexibility following a prospective debt-financed shareholder dividend, which heightens near- and longer-term concerns related to its competitive product categories and concentrated retail customers, particularly in the sunglass segment.

© 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.