S&P ups Simply Good facilities

S&P said it upgraded the Simply Good Foods Co.’s senior secured credit facilities to BB- from B+ and revised the recovery rating to 2 (rounded recovery: 70%) from 3. Also, S&P changed the company’s outlook to stable from negative and affirmed the B+ issuer rating.

The company lowered leverage through EBITDA growth and debt reduction following its $1 billion acquisition of Quest Nutrition LLC in 2019. S&P said its estimate for the fiscal year ended Aug. 29, 2020, pro forma debt leverage declined to about 4.1x from nearly 5x at the close.

“The higher issue rating and revised recovery rating reflect the company’s debt reduction on the first-lien debt, improving the recovery prospects on the facilities,” S&P said in a press release.

The revision reflects Simply Good Foods’ on-track integration of Quest, debt reduction and ability to maintain profits, despite recent headwinds from the pandemic, the agency said.

© 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.