S&P rates Authentic Brands loan B

S&P said it assigned its B issue-level rating to Authentic Brands Group LLC’s proposed $150 million incremental first-lien term loan. The recovery rating is 3, indicating S&P’s expectation for meaningful (50%-70%, rounded estimate: 50%) recovery in the event of a default.

The company plans to use a portion of the proceeds to fund the acquisition of Lucky Brand, and it will keep the rest for future acquisitions.

“The offering will increase ABG's leverage slightly to about 4.8x from 4.6x at the end of first-quarter 2020 on a pro forma basis,” S&P said in a press release.

S&P also affirmed the B issue-level rating on the company's first-lien credit facility, including the $100 million revolver and a $1.6 billion first-lien term loan. The recovery rating remains 3.

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