...- Canada-based Sleep Country Canada Holdings Inc. is a large mattress retailer in Canada, with 40% market share, multiple brands, and above-average profitability. - The company intends to issue C$300 million unsecured notes to repay a portion of its existing term loan and revolver. Pro forma the transaction, based on last 12 months (LTM) ended June 30, 2024, EBITDA, we expect Sleep Country's debt-to-EBITDA ratio to be about 5x, which we believe should improve to high-4x area in 2025. - S&P Global Ratings assigned its '##-' issuer credit rating (ICR) to the company. The '##-' ICR reflects our 'b+' stand-alone credit profile (SACP) and a one-notch uplift based on our assessment of Sleep Country's moderately strategic status to Fairfax Holdings Ltd. (###+/Positive/--) - We also assigned our '##-' issue-level rating, and '4' recovery rating to the company's proposed unsecured debt. The '4' recovery rating reflects modest (30%-50%; rounded estimate: 45%) recovery in an event of hypothetical...
