...March 15, 2021 - Germany-based Kirk Beauty One GmbH intends to refinance its existing senior secured and unsecured debt by issuing senior secured instruments, comprising a term loan B of 1,080 million, senior secured notes of 1,000 million, a revolving credit facility (RCF) of 170 million, and 300 million senior subordinated payment-in-kind (PIK) notes. The RCF will be undrawn at the refinancing's closing. The transaction will reset the company's debt maturity profile and address the refinancing risk associated with its existing capital structure. - After the transaction, we expect Kirk Beauty's S&P Global Ratings-adjusted leverage to be 9.2x-9.6x in FY2021 (8.6x-9.0x excluding noncommon equity [NCE]). - We are placing our '###+' long-term issuer credit rating on Kirk Beauty on CreditWatch with positive implications. We are also assigning our preliminary 'B-' rating to the proposed senior secured instruments and '###' rating to the proposed senior subordinated notes. - The CreditWatch placement...
