S&P keeps Kellwood on watch

Standard & Poor's said its ratings on Kellwood Co. remain on CreditWatch with negative implications following the company's announcement that it entered into an $80 million accelerated share repurchase program. The funding for this transaction will come from proceeds from the sale of its Smart Shirts private label business, which should close some time in the first quarter.

The agency said this transaction is in line with the company's previously announced intended use of proceeds from the sale of Smart Shirts.

The initial CreditWatch listing on Sept. 19 followed Kellwood's receipt of an unsolicited bid from Sun Capital Securities Group LLC to buy the company. Ratings were subsequently lowered on Oct. 17, reflecting weak underlying business trends and the tougher operating environment at retail, as well as weakening credit protection measures.

S&P said that although Kellwood rejected Sun Capital's bids, the ratings have remained on CreditWatch as the agency continues to monitor related events as they arise, including any revised offers or counteroffers.

© 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.