S&P rates Nine West loan B-

S&P said it assigned a B- rating and 3 recovery rating to Nine West Holdings Inc.'s proposed $325 million first-lien term loan due in 2024.

The company also plans to issue a $175 million asset-based lending facility and $12.5 million ABL first-in last-out term loan facility.

Nine West is expected to emerge from bankruptcy in mid- to late-March after initially filing for Ch. 11 bankruptcy protection in April 2018, S&P said.

The ratings reflect competitive challenges that the company still faces, even after disposing of its retail stores and selling its footwear and handbags businesses, the agency said, along with its aggressive leverage.

The ratings reflect the company's narrow product focus in highly competitive and fragmented markets with modest growth prospects, limited brand equity and relatively low EBITDA margin, S&P said.

The positive outlook reflects a belief that good year-to-date booking trends should support stabilization in most of Nine West's operating segments, the agency 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.