Research Update: Boardriders Inc. Rating Raised To 'CCC' From 'SD', Outlook Negative; Debt Ratings Assigned

U.S. action sports apparel company Boardriders Inc. recently completed a transaction to provide needed liquidity and fund an operational turnaround. S&P Global Ratings viewed the transaction as tantamount to a default due to the company's distressed position and because term loan lenders did not receive adequate compensation for being relegated to a junior position in the capital structure. We are now raising our issuer credit rating on Boardriders to 'CCC' from 'SD', which reflects our updated view of the company's still distressed credit risk underpinned by an unsustainable capital structure, high debt service burden, and potentially tight covenant cushion when the covenant becomes effective in first quarter 2022. In addition, we are assigning our 'CCC' rating to the company's recently

...- U.S. action sports apparel company Boardriders Inc. recently completed a transaction to provide needed liquidity and fund an operational turnaround. S&P Global Ratings viewed the transaction as tantamount to a default due to the company's distressed position and because term loan lenders did not receive adequate compensation for being relegated to a junior position in the capital structure. - We are now raising our issuer credit rating on Boardriders to '###' from '##', which reflects our updated view of the company's still distressed credit risk underpinned by an unsustainable capital structure, high debt service burden, and potentially tight covenant cushion when the covenant becomes effective in first quarter 2022. - In addition, we are assigning our '###' rating to the company's recently issued super senior term loan with a '4' recovery rating indicating our expectation of average (rounded estimate: 35%) recovery. - We are also raising our ratings on the $119 million remaining balance...

Research Update