Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers S > Headlines for Samsonite Corp. > News item |
S&P revises Samsonite watch to developing
Standard & Poor's revised its CreditWatch on Samsonite Corp. to developing from negative including its $100 million domestic term due 2005, $100 million revolving credit facility due 2003 and $50 million foreign term loan due 2003 at B-, $350 million 10.75% senior subordinated notes due 2008 at CCC and $175 million redeemable exchangeable preferred stock at CCC-.
S&P said the action follows Samsonite's announcement that it had entered into a recapitalization agreement.
The proposed transaction will not only improve the company's financial profile by lowering total debt and its preferred stock burden but will also eliminate near-term term bank debt maturities, S&P said.
However, the amount and timing of any transaction is uncertain because it is subject to several conditions, S&P noed. These include the company's entering into a new credit facility and reaching an agreement with the Pension Benefit Guaranty Corp. satisfactory to the new investors with respect to the company's ability to refinance the new credit facility in the future.
Upon closing of the proposed transaction, based on current terms and conditions, S&P said it Poor's expects to raise Samsonite's ratings one notch. This would reflect the company's improved liquidity position and expectations that its improved financial performance will be sustainable.
Samsonite's ratings could still be lowered at least one notch in the near term if the company is unable to complete the proposed recapitalization or satisfactorily address its upcoming financial obligations, S&P 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.