Fitch rates Anastasia BB-, loans BB+

Fitch Ratings said it assigned a BB- long-term issuer default rating to Anastasia Intermediate Holdings, LLC (Anastasia Beverly Hills Inc.) and Anastasia Parent, LLC.

The outlook is stable.

Anastasia Parent’s senior secured revolving credit facility and senior secured term loan B are rated BB+/RR1.

The company is proposing a $650 million term loan. Proceeds, in addition to proceeds from a recent minority equity investment by TPG Capital, will be used to pay the founding family a dividend.

The agency said the ratings reflect the company's strong track record of growth and customer connections, good financial profile including above-average EBITDA margin and positive free cash flow, and leverage of mid-3x following the proposed debt-financed dividend, which Fitch projects would trend towards the high 2x over the next two to three years.

The rating also considers the company's narrow product and brand profile, recent explosive growth that could reverse course, and risk that continued beauty industry market share shifts could weaken its projected growth through the risk of new entrants or existing players regaining share, the agency added.

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