S&P assigns NYDJ facilities B+

Standard & Poor's said it assigned a B corporate credit rating to NYDJ Apparel LLC.

The outlook is stable.

At the same time, the agency assigned NYDJ's $162.5 million senior secured credit facilities (consisting of a $12.5 million revolver and a $150 million term loan) a B+ issue-level rating with a recovery rating of 2, indicating an expectation for substantial (70% to 90%) recovery for lenders in the event of a payment default.

NYDJ will use the proceeds, along with a $50 million second-lien term loan that is not rated and sponsor equity, to finance the purchase of the company.

"Our ratings on NYDJ partly incorporates our view that the company has a narrow focus within a highly competitive industry," S&P credit analyst Michael Audino said in a news release.

"The ratings also reflect our expectation that the ratio of debt to EBITDA will be below 4.5x, and funds from operations to debt will be in the mid- to high-teens percentage area over the next two years."

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