Private equity sponsor Golden Gate Capital announced that it will establish a new operating company, PSEB Group (unrated), and will combine portfolio brands Eddie Bauer and Pacific Sunwear of California (PacSun) under it. As a result, we are placing all our ratings on U.S.-based apparel retailer Everest Holdings LLC (d/b/a Eddie Bauer), including our 'CCC+' corporate credit rating, on CreditWatch with positive implications. Although specific terms of the transaction financing, including the mix of debt and equity, have not been disclosed, we believe the likelihood of debt repayment at par for holders of Everest Holdings' debt reduces the potential for default in the coming year. We expect to resolve the CreditWatch following our review of the financial and strategic impact
