...- Golden Goose S.p.A. intends to issue 470 million of long-term senior secured notes to refinance the bridge loan it used to finance its acquisition by private equity firm Permira, which was completed in 2020. - We see positive volume growth prospects and strong pricing power enabling stable profitability, with adjusted EBITDA margins of around 30% (after leases), thanks to a recent track record of success in U.S. and China sales and digitally savvy marketing, although we see high product concentration and execution risks regarding further retail expansion. - We estimate adjusted debt leverage at around 6.0x in 2020 slightly reducing in 2022, with limited free cash flow in 2021, negative working capital swings, and high capital expenditure (capex) offsetting EBITDA growth, alongside uncertainty on consumer spending through 2021 amid the COVID-19 pandemic. - We assigned our preliminary 'B-' ratings to Golden Goose and its proposed 470 million senior secured notes, with a preliminary recovery...
