S&P assigns B to ABG loans

S&P said it assigned B ratings to Authentic Brands Group LLC’s new $1.525 billion first-lien term loan and $600 million delayed-draw first-lien term loan. The company also plans to upsize its revolver to $240 million from $150 million and extend it by five years.

ABG will use the new loans to refinance its $1.5 billion term loan to December 2028 from September 2024 and use the delayed-draw loan and cash to fund its acquisition of Boardriders Inc.

“Despite the company's increased debt burden to fund the sizable acquisition of Boardriders, we expect the transaction to be largely leverage-neutral. However, the acquisitive growth strategy continues to illustrate ongoing aggressive financial policies and expectation for leverage exceeding 5x in the longer term,” S&P said in a press release.

The outlook is stable.

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