S&P assigns Fossil notes B

S&P said it assigned B issue-level and 4 recovery ratings to Fossil Group Inc.'s planned $125 million of senior unsecured notes due 2026. The 4 recovery rating indicates an expectation for average (30%-50%; rounded estimate: 40%) recovery in default.

The company intends to use the proceeds to repay its $200 million ($122 million outstanding) first-lien term loan facility due September 2024.

“Our B issuer credit rating on Fossil is unaffected by this transaction, which we expect will be net leverage neutral. We will withdraw our ratings on the company's existing first-lien term loan facility once it is repaid,” S&P said in a press release.

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