S&P assigns BB+ to Samsonite loans

S&P said it assigned BB+ issue-level and 2 recovery ratings to Samsonite IP Holdings Sarl's planned $850 million revolving credit facility, $800 million term loan A and $600 million term loan B. The 2 recovery rating indicates substantial (70%-90%; rounded estimate 85%) recovery.

The senior unsecured rating remains BB- with a 4 recovery rating. The recovery estimate increased to 40% from 35%.

The company plans to use the proceeds to refinance its debt.

“We consider the transaction to be roughly neutral for leverage and our issuer credit rating on Samsonite remains BB. The stable outlook reflects our expectation that Samsonite will maintain S&P Global Ratings-adjusted EBITDA margin near current levels while expanding revenue, which will decrease S&P Global Ratings lease-adjusted leverage below 3x in 2023 and 2024 from 3x in 2022,” the agency said in a press release.

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