S&P gives Topps loans B

S&P said it gave B issue-level and 3 recovery ratings to the Topps Co. Inc.'s new $200 million term loan B due 2028 and $50 million revolving credit facility due 2026.

“The anticipated B rating reflects favorable trends in the company's core markets, reduced S&P Global Ratings-adjusted debt to EBITDA, and our expectation that public ownership will lead to a more conservative financial policy. Demand has spiked for the company's sports and entertainment products, which consist of sports and entertainment-based trading cards and collectibles,” S&P said in a press release.

The company will use the proceeds to repay debt.

“In addition, the refinancing eliminates near-term refinancing risk, and we also believe increased demand for Topps' products will enable the company to maintain S&P Global Ratings-adjusted leverage of 2x-2.5x in fiscal 2021, ending January 2022. Our current B- issuer credit rating on Topps remains on CreditWatch with positive implications, and we expect to raise it to B once the transaction successfully closes,” the agency said.

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