...April 27, 2021 - Kirk Beauty has refinanced its existing debt by issuing senior secured instruments comprising a 600 million term loan B, 1,305 million senior secured notes, a 170 million revolving credit facility (RCF), and 475 million senior subordinated payment-in-kind (PIK) notes. The RCF remains undrawn at closing. - The transaction resets the company's debt maturity profile and addresses the refinancing risk associated with its capital structure. However, we think the company's capital structure remains highly leveraged, with forecast S&P Global Ratings-adjusted debt to EBITDA of 9.5x-9.7x in the financial year ending Sept. 30, 2021 (FY2021) (9.0x-9.2x excluding non-common equity [NCE]), and materially negative free operating cash flow (FOCF). - We raised our long-term issuer rating on Kirk Beauty One GmbH to 'B-'. We also assigned our 'B-' issue rating with a '3' recovery rating to the new senior secured instruments, and our '###' issue rating with a '6' recovery rating to the new...
