S&P drops Instant Brands view to negative

S&P said it revised the outlook for Instant Brands Holdings Inc. (formerly Corelle Brands Holdings Inc.) to negative from stable and affirmed the B ratings on the company and its $450 million first-lien term loan due 2028.

“The outlook revision to negative from stable reflects Instant Brands' elevated leverage and weak cash flow through the third quarter. We estimate leverage for the 12 months ended Sept. 30, 2021, was about 7x. We had expected the company to deleverage closer to 6.5x by the end of 2021. We believe leverage will remain about 7x through the end of fiscal 2021 and negative free operating cash flow (FOCF) due to high working capital use that will not unwind until 2022,” S&P said in a press release.

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