S&P rates Lifetime Brands loan B+

S&P said it assigned its B+ corporate credit rating to Lifetime Brands Inc. The outlook is stable.

At the same time, S&P assigned a B+ issue-level and 3 recovery ratings to the company's proposed $275 million term loan B due in 2025. The 3 recovery rating indicates an expectation for meaningful recovery (50%-70%; rounded estimate: 50%) in a default scenario.

Proceeds from the term loan and about $53 million drawn on the company's proposed $150 million asset-based lending (ABL) due in 2023 (unrated), and $98 million of equity to be issued to Filament shareholders will fund the purchase, refinance outstanding ABL balances, and cover fees and expenses.

S&P said the ratings on Lifetime reflect the company's higher leverage following the Filament acquisition, narrow business focus, limited size, low EBITDA margin and participation in a highly competitive, fragmented and modestly cyclical industry.

“Yet, we recognize that the company has leading market positions and scale in its categories, diverse product offerings, and good brands,” S&P said in a news release.

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