S&P rates William Carter notes BB+

S&P said it assigned its BB+ issue-level rating to Carter’s Inc. subsidiary the William Carter Co.'s proposed $400 million of senior unsecured notes due in 2025. The recovery rating is 3, indicating an expectation of meaningful (50%-70%; rounded estimate: 65%) recovery in the event of a payment default.

“While the unsecured notes have more than 65% of calculated recovery prospects,we cap the recovery rating at 3 due to the company's ability to pledge security to raise new debt ahead of the unsecured notes,” said S&P in a press release.

Proceeds are expected to be used to pay down a portion of the revolver balance and the rest for general corporate purposes.

Carter's Inc. and the subsidiaries that guarantee the credit facility will guarantee the notes.

The also affirmed the BB+ issue credit rating and 3 recovery rating on the company's $500 million unsecured notes due in 2027.

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