Instant Brands Holdings Inc.'s Proposed Term Loan Rated 'B'; Outlook Revised To Stable From Negative

U.S.-based Instant Brands Holdings Inc. (formerly known as Corelle Brands Holdings Inc.) is issuing a new $450 million first-lien term loan. The company will use the proceeds, along with $100 million in cash, to refinance its existing $200 million term loan due 2024, $100 million seller notes, and fund a $245 million dividend to shareholders. Despite the leveraged dividend, S&P Global Ratings expects improved operating performance to result in leverage declining under 6.5x by the end of fiscal 2021. Performance has stabilized following plant and retailer closures in 2020 stemming from COVID-19. As a result, we revised our outlook to stable from negative and affirmed our 'B' issuer credit rating on Instant Brands. At the same time, we assigned a

...- U.S.-based Instant Brands Holdings Inc. (formerly known as Corelle Brands Holdings Inc.) is issuing a new $450 million first-lien term loan. The company will use the proceeds, along with $100 million in cash, to refinance its existing $200 million term loan due 2024, $100 million seller notes, and fund a $245 million dividend to shareholders. - Despite the leveraged dividend, S&P Global Ratings expects improved operating performance to result in leverage declining under 6.5x by the end of fiscal 2021. Performance has stabilized following plant and retailer closures in 2020 stemming from COVID-19. - As a result, we revised our outlook to stable from negative and affirmed our 'B' issuer credit rating on Instant Brands. - At the same time, we assigned a 'B' rating to the company's proposed $450 million first-lien term loan. The recovery rating is '3', indicating our expectation for a meaningful recovery (50%-70%; rounded recovery: 60%). - The stable outlook reflects our expectation that...

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