S&P raises Isagenix

S&P said it upgraded Isagenix Worldwide Inc.’s issuer rating to B- from SD. Concurrently, the agency raised the issue-level rating on the $40 million revolver due 2023 to B+ from CCC and revised the recovery rating to 1 from 3 to reflect the lower debt claims at emergence after the company cumulatively repurchased a material portion of its term loan at prices well below par.

The rating on the $375 million term loan due 2025 remains D because S&P said it believes more repurchases at prices well below par are possible given the loan’s continued distressed trading price.

“We expect both the topline and EBITDA to grow modestly in 2021, driven by continued demand as customers focus on health and wellness We expect adjusted leverage to stay in the low-5x area and free cash flow of around $30 million in 2021,” the agency said in a press release.

The outlook is negative.

© 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.