S&P lowers Fanatics facility

S&P said it lowered its issue-level rating on Fanatics Holdings Inc. (FHI) subsidiary Fanatics Collectibles Intermediate Holdco Inc.'s senior secured credit facility to BB- from BB. The facility consists of a $300 million revolver and a $248 million first-lien term loan.

The agency also revised the recovery rating to 3 from 2. The 3 recovery rating indicates meaningful recovery (50%-70%; rounded estimate: 60%) if Fanatics defaults.

Fanatics Collectibles boosted its revolving credit facility to $300 million from $100 million on Friday. “Given the revolver upsize, our projected level of revolver borrowings outstanding in a hypothetical default scenario has increased, reducing the recovery prospects for the senior secured lenders,” S&P said in a press release.

All other ratings on FHI, Fanatics Collectibles, and Fanatics Commerce Intermediate Holdco LLC, including the BB- issuer credit ratings, are unchanged.

The outlook is negative.

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