S&P rates Augusta Sportswear loan B+

S&P said it assigned a B+ corporate credit rating to Oak Holdings LLC, also known as Augusta Sportswear Group.

The agency also said it assigned a B+ rating and 3 recovery rating to the company's proposed $40 million revolving credit facility due in 2021 and $395 million first-lien term loan due in 2023.

The 3 recovery rating indicates 50% to 70% expected default recovery.

The outlook is stable.

The proceeds will be used from the debt offering to repay about $60 million under its existing revolving credit facility, $320 million of the first-lien term loan and estimated fees and expenses, S&P said.

This transaction is considered leverage neutral, the agency said, and the company will have about $410 million in adjusted debt.

The ratings reflect the company’s significant debt burden, narrow business focus in replenishing sportswear staples, exposure to textile-related input cost volatility and participation in the fragmented school and club sports team uniform industry, S&P said.

The ratings also reflect its low customer and channel concentration and its ability to service small customers, the agency added.

© 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.