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S&P raises Samsonite International notes
S&P said it raised its rating on Samsonite International SA's €350 million of 3˝% senior unsecured notes due 2026 to B from B- after the company reported it repaid $125 million of its senior secured term loan A balance. The company also plans to repay $100 million of its senior secured term loan B balance.
“We revised the recovery rating on the senior unsecured notes to 4 from 5. Samsonite also repaid $100 million of its outstanding balance on its $850 million revolving credit facility. The company is utilizing its cash balances to make these payments, lowering the amount of debt ahead of the senior unsecured notes, improving the recovery prospects,” the agency said in a press release.
The 4 recovery rating indicates an expectation for average (30%-50%; rounded estimate: 35%) recovery in default. The ratings also reflect the repayment of the term loan B balance, S&P said.
S&P also affirmed the B+ rating on the company's senior secured facilities. The senior secured facilities include an $850 million revolver due 2025 ($717 million outstanding as of Monday), an $800 million term loan A due in 2025 ($655 million outstanding as of Monday), a $665 million term loan B due in 2025 ($547 million outstanding as of Monday) and an incremental $600 million term loan B due in 2025 ($496 million outstanding pro forma for $100 million debt repayment as part of the announced repricing transaction). The 2 recovery rating is unchanged and indicates an expectation for substantial recovery (70%-90%; rounded estimate: 80%) in default.
“All of our other ratings on the company, including the B issuer credit rating and negative outlook, are unaffected by this transaction,” the agency said.
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