Research Update: IRB Holding Corp. Upgraded To 'B+' On Expanded Scale And Profitability From Acquisition Of Jimmy John's

On Oct. 18, 2019, Atlanta, Ga.-based restaurant holding company IRB Holding Corp. (Inspire Brands) announced the completion of its acquisition of Jimmy John's, LLC (Jimmy John's) in exchange for equity and assumption of existing debt. S&P Global Ratings is raising the ratings on Inspire Brands, including our issuer credit rating to 'B+' from 'B', and removing all ratings from CreditWatch, where we placed them with positive implications on Sept. 25. At the same time, we are raising our issue-level rating on the company's senior secured term loan to 'B+' from 'B' and on its senior unsecured notes to 'B-' from 'CCC+'. The recovery ratings are unchanged at '3' and '6', respectively. The stable outlook reflects our expectation that Inspire Brands

...- On Oct. 18, 2019, Atlanta, Ga.-based restaurant holding company IRB Holding Corp. (Inspire Brands) announced the completion of its acquisition of Jimmy John's, LLC (Jimmy John's) in exchange for equity and assumption of existing debt. - S&P Global Ratings is raising the ratings on Inspire Brands, including our issuer credit rating to 'B+' from 'B', and removing all ratings from CreditWatch, where we placed them with positive implications on Sept. 25. - At the same time, we are raising our issue-level rating on the company's senior secured term loan to 'B+' from 'B' and on its senior unsecured notes to 'B-' from '###+'. The recovery ratings are unchanged at '3' and '6', respectively. - The stable outlook reflects our expectation that Inspire Brands will integrate Jimmy John's into its portfolio and execute on key operating initiatives. We also expect leverage will improve to about mid- to high-6x at the end of fiscal 2020....

Research Update