Moody’s rates FullBeauty loans B1, Caa1

Moody’s Investors Service said it assigned a B2 corporate family rating and B2-PD probability of default rating to FullBeauty Brands Holdings Corp., as well as a B1 rating to the company’s proposed $820 million first-lien term loan due 2022 and Caa1 rating to its proposed $345 million second-lien term loan due 2023.

The outlook is stable.

The proceeds, along with contributed and rollover equity, will be used to finance the acquisition of a majority stake in the company by Apax Partners LLP, Moody’s said.

After the acquisition, the current majority equity sponsor, Charlesbank Capital Partners, will retain about 25% ownership, the agency said.

Pro-forma leverage for the transaction is estimated at about 7x, which positions the company weakly in the B2 rating category, Moody’s said.

But the stable outlook reflects an expectation for the company’s continued strong operating performance, which is driven by the company’s focus on the growing and underserved plus-sized market, the agency said.

The ratings also are supported by its history of top-line growth and margin improvement, Moody’s said.

© 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.