CVC Capital Partners has announced it will acquire U.S.–based PDC Brands. The new capital structure of the proposed borrower, Parfums Holding Co. Inc., includes a $65 million senior secured revolving credit facility, a $530 million first-lien term loan, and a $220 million second-lien term loan. We estimate adjusted debt to EBITDA will weaken to the low-8x area from 3x pro forma for the transaction. We are assigning our 'B' corporate credit rating to Parfums Holding Co. Inc., 'B' issue-level rating to the first-lien credit facilities, and 'CCC+' issue-level rating to the proposed second-lien term loan. The outlook is negative, reflecting the potential for a lower rating over the next 12 months if Parfums does not improve its credit ratios, including
