Research Update: Renfro Corp. Upgraded To 'CCC-' From 'SD', Outlook Negative; Term Loan Rating Raised To 'CC'; New Priming Loan Rated

U.S. sock manufacturer Renfro Corp. recently completed a transaction wherein it borrowed $10.1 million under a priming new money term loan and permitted its existing term loan lenders that participated in the new debt issuance to roll up a portion of its existing term loan into the new priming term loan. We viewed the transaction as tantamount to a default on the existing term loan. We are now raising our issuer credit rating to 'CCC-' from 'SD' (selective default) to reflect our view that a payment default or restructuring appears inevitable in the next six months primarily due to the refinancing risk associated with its upcoming debt maturities. At the same time, we are raising our issue-level rating on Renfro's

...- U.S. sock manufacturer Renfro Corp. recently completed a transaction wherein it borrowed $10.1 million under a priming new money term loan and permitted its existing term loan lenders that participated in the new debt issuance to roll up a portion of its existing term loan into the new priming term loan. We viewed the transaction as tantamount to a default on the existing term loan. - We are now raising our issuer credit rating to '###-' from '##' (selective default) to reflect our view that a payment default or restructuring appears inevitable in the next six months primarily due to the refinancing risk associated with its upcoming debt maturities. - At the same time, we are raising our issue-level rating on Renfro's term loan to '##' from 'D' and are assigning our '###+' issue-level rating to the new priming term loan. - The negative outlook reflects the high probability that the company will default on its debt obligations or engage in a restructuring transaction over the next six...

Research Update