S&P lifts Authentic Brands

S&P said it raised its issuer credit rating on Authentic Brands Group LLC to B+ from B.

Concurrently, S&P raised the issue-level ratings on the company’s first-lien senior secured debt to BB- from B and revised the recovery rating to 2 from 3. The 2 recovery rating indicates an expectation for substantial (70%-90%; rounded estimate: 75%) recovery in the event of a default.

S&P also raised the issue-level ratings on the company's second-lien senior secured debt to B- from CCC+. The 6 recovery rating is unchanged and indicates an expectation for negligible (0%-100%; rounded estimate: 0%) recovery in the event of a default.

The outlook is stable.

S&P said Authentic Brands outperformed the agency’s previous forecast for its sizable 2022 acquisition of Reebok and recently closed its acquisition of Boardriders Inc., funding it with less debt than previously expected due to new equity from its financial sponsors.

The company also repaid $300 million of debt over the past 12 months. As a result, S&P now expects pro forma leverage will improve to the low-4x area in 2023, compared with a previous expectation in the mid-4x area.

© 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.