Moody’s rates Authentic Brands loans B1, Caa1

Moody's Investors Service said it affirmed ABG Intermediate Holdings 2 LLC's (Authentic Brands Group LLC) B2 corporate family rating and B2-PD probability of default rating, as well as the B1 rating on the first-lien credit facilities and the Caa1 rating on the second-lien term loan.

The affirmations come after the company announced a proposed $145 million add-on to its credit facilities.

The agency also assigned a B1 rating to Authentic Brands’ proposed $35 million delayed-draw first-lien term loan and a Caa1 rating to its proposed $15 million delayed-draw second-lien term loan.

The outlook remains stable.

The add-ons will increase the first-lien term loan by $85 million and the second-lien term loan by $60 million.

Proceeds will be used to repay equity contributed by the company's financial sponsor Leonard Green & Partners, LP and management that was used to fund the acquisition of Jones New York in April, fund the recently announced acquisition of Fredericks of Hollywood, pay a dividend of almost $50 million to shareholders and pay related fees and expenses.

The proposed delayed-draw facilities, along with additional contributed equity and cash on hand, will be available six months after closing to finance future acquisitions currently under consideration by Authentic Brands.

© 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.