S&P rates WHP Global, loans B-

S&P said it assigned B- ratings to WH Intermediate LLC (WHP Global) and its planned senior secured $50 million revolving credit facility and $450 million term loan. The loans’ recovery rating is 3, indicating an expectation for meaningful (50%-70%; 55% rounded estimate) recovery in default.

WHP is majority owned by founders Yehuda Shmidman and Oaktree Capital Management LP.

“The ratings reflect WHP's high leverage, financial sponsor ownership and our view that its high growth strategy entails significant risk. WHP was founded in 2019 by Yehuda Shmidman, who has 15 years of experience leading both public and private global brand management firms, and Oaktree's private-equity division. Through this partnership the company has been able to deploy capital to acquire strong brands from distressed companies,” the agency said in a press release.

WHP will use the proceeds to repay debt, pay a $50 million dividend and leave $100 million in cash on the balance sheet. S&P noted Oaktree has made available another $150 million of capital.

The outlook is stable.

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