Moody's rates Amer Sports loans B1

Moody's Investors Service said it assigned B1 ratings to Amer Sports Corp.'s planned €600 million backed senior secured term loan due 2031 and $800 million backed senior secured revolving credit facility due 2029. Concurrently, the agency assigned a B1 rating to Amer Sports Co.'s new $600 million backed senior secured term loan due 2031.

Amer Sports Holding 1 Oy’s other ratings are unaffected, including the B2 long-term corporate family rating, the B2-PD probability of default rating and the B2 backed senior secured ratings on Amer Sports Holding's €1.7 billion senior secured term loan B due March 2026 and on the €315 million backed senior secured revolving credit facility due September 2025, which remain on review for upgrade. Moody's said it plans to withdraw the ratings on the outstanding debt instruments after they are repaid, the agency said in a statement.

“The B1 rating for the proposed new backed senior secured bank credit facilities is based on the expectation that Amer Sport's CFR will be upgraded to B1 once the IPO and the refinancing transactions are closed under the currently expected terms. Moody's understands that the $1.27 billion IPO proceeds, together with around €200 million cash from the company's balance sheet, will be used to prepay the €1.3 billion term loan A (TLA) sitting outside of Amer Sports' restricted group, and to pay related transaction fees,” the agency said in a statement.

Amer Sports plans to use the new term loans to repay part of Amer Sports Holding's €1.7 billion loan and fund-related transaction fees.

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