S&P puts Amer Sports on positive watch

S&P said it placed its B+ ratings for Amer Sports Holding 1 Oy, its €1.7 billion first-lien senior secured term loan due 2026 and its €315 million revolver due 2025 on CreditWatch with positive implications.

On Jan. 4, Amer Sports reported it filed for an IPO on the New York Stock Exchange.

The company plans to use the proceeds to repay its €1.3 billion term loan A due in March and the €313 million of borrowings under its revolving credit facility maturing in 2025.

“We expect this to materially improve Amer Sports' S&P Global Ratings-adjusted debt to EBITDA ratio to approach 3x at IPO close and 2.5x by year-end 2024, supported by increasing EBITDA during the year,” the agency said in a press release.

S&P said it plans to resolve the positive watch once Amer Sports closes the IPO and repays the loan and revolver draws.

“Rating upside would depend on our evaluation of Amer Sports' final capital structure, new ownership structure, and financial policy after the transaction closes. If the IPO closes in line with current expectations, we expect a material improvement in S&P Global Ratings-adjusted debt to EBITDA that could lead us to upgrade the company by multiple notches,” 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.