Moody's rates Calceus loan B2

Moody's Investors Service said it assigned a B2 corporate family rating to Calceus Acquisition, Inc., the entity that will acquire Cole Haan LLC, as well as a B2 (LGD 4, 57%) rating to the company's proposed $270 million senior secured term loan due 2020.

The outlook is stable.

The proceeds from the term loan, as well as drawings under the company's unrated $100 million asset based revolver and equity from funds affiliated with Apax Partners LLP, will be used to fund the purchase of Cole Haan from Nike Inc. in a transaction that values Cole Haan at about $570 million.

The ratings reflect the company's moderate scale in the footwear and accessories industry with revenues of about $561 million and reliance on a single premium brand, Moody's said.

The ratings also consider the company's high initial leverage with the debt-to-EBITDA ratio expected to be near six times as of the most recent period, the agency said.

The ratings also reflect Cole Haan's unique position as a dual-gender premium footwear brand, which markets a wide range of styles, Moody's 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.