S&P puts Authentic Brands on positive watch

S&P said it placed all its ratings on Authentic Brands Group LLC on CreditWatch with positive implications.

The CreditWatch placement follows the issuer’s parent Authentic Brands Group Inc. filing for an initial public offering, the agency said.

“The positive CreditWatch listing reflects the probability that we could affirm or raise the ratings following the IPO. While net proceeds are to be determined, we believe the company will use a substantial portion to repay borrowings under its first-lien credit facilities. The total amount outstanding as of March 31, 2021, was $1.8 billion. Significant debt repayment could reduce leverage below S&P Global Rating's-adjusted debt to EBITDA of 4.8x for the 12 months ended March 31, 2021,” S&P said in a press release.

The agency said it aims to resolve the CreditWatch after the company prices it shares, discloses how much of the proceeds will be used to repay debt and evaluates the company’s planned financial policy.

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