Fitch gives First Brands loans BB+, BB-

Fitch Ratings said it gave First Brands Group LLC and its $250 million senior secured asset-based lending facility and $1.483 billion senior secured first-lien term loan BB+ ratings. The recovery rating on the ABL facility is RR1 and RR2 on the first-lien term loan. The agency also assigned BB-/RR4 ratings to First Brands’ $540 million senior secured second-lien term loan.

“Fitch expects FBG's FCF margins to be pressured in the short-term due primarily to the timing of the company's restructuring activities as well as costs associated with its debt refinancing transaction earlier in 2021,” the agency said in a press release.

However, Fitch said it sees First Brands’ FFO leverage to be 4x by the end of 2021 and potentially towards the mid-3x by the end of 2022.

The outlook is stable, reflecting FBG's solid business profile, with a focus on the less-cyclical automotive aftermarket parts segment, Fitch 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.