Moody's assigns SVP, loan B3

Moody's Investors Service said it assigned ratings to Stitch Acquisition Corp. (SVP Worldwide), including a B3 corporate family rating and a B3-PD probability of default rating. Moody's also assigned a B3 rating to the company's planned $350 million senior secured first-lien term loan due 2028. The outlook is stable.

“SVP Worldwide's B3 CFR broadly reflects its high financial leverage with debt/EBITDA estimated at 3.9x as of the last 12 months period (LTM) ending March 31, 2021, and pro forma for the LBO transaction. Demand for the company's products has been very high this past year driven by increased sewing participation due to consumers spending more time at home because of the coronavirus outbreak,” Moody’s said in a press release.

Term loan proceeds, along with a contribution of new common equity from Platinum Equity Capital Partners and rollover equity from shareholders, will fund the leverage buyout of SVP Worldwide by Platinum Equity, refinance debt, and pay related fees and expenses. Concurrent with the transaction the company is expected to enter a $70 million asset based lending revolving credit facility due 2026 (unrated) that is expected to be undrawn at close.

The outlook reflects expectations for revenue and earnings declines over the next 12-18 months due to difficult comps following strong demand over the past year, but that debt/EBITDA leverage will remain under 6x, 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.