U.S.-based specialty apparel retailer Everest Holdings LLC (doing business as Eddie Bauer) is proposing a $250 million senior secured term loan B due 2020. The company plans to use proceeds from the term loan to repay its existing senior secured notes and to fund a $117 million dividend to shareholders, including majority owner and financial sponsor, Golden Gate Capital. We are assigning our 'B-' corporate credit rating to Eddie Bauer and our 'B-' issue-level rating to the company's proposed term loan B. The recovery rating is '3'. The positive outlook reflects our view that credit protection measures could improve above our forecasted levels if the company is able to continue its profit growth trajectory and repay debt, while refraining from
