Moody’s turns Pelican view to negative

Moody’s Investors Service said it revised the outlook for Peacock Intermediate Holding II, LP and its subsidiary Pelican Products Inc. to negative from stable and affirmed Peacock’s B3 ratings and the B2 rating on Pelican’s senior secured first-lien debt.

“The change in outlook reflects Moody's view that debt to EBITDA will be sustained at very high levels, likely remaining around 8x through the end of 2023. The buildup in inventory has also resulted in negative free cash flow in the last four quarters, which is considerably weaker than the positive $27 million Moody's expected for 2022 at the time of the leverage buyout (LBO) in November of 2021,” the agency said in a press release.

Pelican’s liquidity is forecasted to be adequate over the next 18-24 months, 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.