Moody’s rates Samsonsite add-on Ba2

Moody’s Investors Service said it assigned a Ba2 rating to Samsonite IP Holdings Sarl’s proposed $500 million first-lien term loan add-on.

Proceeds will be used to enhance further Samsonite International SA's liquidity and financial stability in the face of unprecedented travel disruption and decline in discretionary consumer spending related to the coronavirus pandemic, Moody’s said.

Pro forma for the offering, the company's cash balance will increase to about $1.7 billion. This compares to the company's pro forma funded debt of $3.1 billion.

Also, the agency downgraded the company’s bank facility to Ba2 from Ba1, citing a reduction in loss absorption since first-lien debt now constitutes 87.3% of the company’s total funded debt, up from 77.5%.

Moody’s affirmed Samsonite’s Ba2 rating and the B1 rating on the senior unsecured notes.

The agency also upgraded the speculative grade liquidity rating SGL-1 from SGL-2 and the outlook remains negative.

© 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.