Moody’s rates Augusta CFR, facilities B1

Moody's Investors Service said it assigned a B1 corporate family rating and a B2-PD probability of default rating to Oak Parent, Inc., an indirect parent company of Augusta Sportswear Holdings, Inc.

The agency also assigned a B1 rating to the company's proposed secured credit facilities, consisting of a $40 million revolver and $395 million term loan.

The outlook is stable.

Proceeds from the proposed term loan will be used to refinance existing debt and pay related fees and expenses.

Moody’s said the B1 corporate family rating reflects the company's defensible market position in the wholesale team uniform, school-related sportswear and dancewear markets that, when combined with high barriers to entry, drive strong operating margins and cash flow generation.

The ratings also consider the limited level of fashion risk in the company's products, product breadth and demand stability from the ultimate end users, all of which drive revenue stability, 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.