S&P assigns Kontoor notes BB-

S&P said it assigned its BB- issue-level rating to Kontoor Brands' planned $400 million of senior unsecured notes due in 2029. The recovery rating is 5, indicating an expectation of modest (10%-30%; rounded estimate: 15%) recovery in default.

The company is expected to use the proceeds, together with cash on hand, to fund repayment of its term loan B and a partial repayment of its term loan A. “We view this transaction to be debt neutral,” S&P said in a press release.

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