S&P ups S&S

S&P said it raised the issuer rating on S&S Holdings LLC (S&S Activewear) to B from B-, the first-lien loan to B from CCC+ and second-lien loan to B- from CCC. The recovery ratings are unchanged.

“The upgrade reflects our expectation for prudent risk management and leverage staying well below 6x during the next 12 months. As of the last 12 months (LTM) ended Sept. 30, 2021, adjusted leverage declined to 5.2x, from 6.3x in the LTM ended June 30, 2021,” the agency said in a press release.

The company plans to issue a $150 million incremental first-lien term loan and intends to upsize its revolving credit facility to $275 million, undrawn at close, from $225 million. S&S plans to use the incremental debt–in addition to $100 million balance sheet cash–to fund the purchase of TSC Apparel.

The outlook is stable.

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