Research Update: VC GB Holdings I Corp. Upgraded To 'B' On Improved Credit Metrics; Outlook Stable

U.S.-based VC GB Holdings I Corp. (operating as Visual Comfort&Co.) announced a leverage-neutral refinancing of its $295 million second-lien term loan ($269 million outstanding) with a proposed fungible $275 million first-lien term loan add-on. It will use excess cash proceeds to pay fees and expenses. The company's profitability and cash flow generation improved in fiscal year 2023, resulting in S&P Global Ratings-adjusted debt to EBITDA of about 6.4x. It also repaid $26 million of its second-lien debt during the year. We forecast S&P Global Ratings-adjusted leverage will decline to about 6x at fiscal year-end 2024 (ending December 2024), driven by continued growth in profitability. As a result, we raised our issuer credit rating on Visual Comfort to '

...- U.S.-based VC GB Holdings I Corp. (operating as Visual Comfort & Co.) announced a leverage-neutral refinancing of its $295 million second-lien term loan ($269 million outstanding) with a proposed fungible $275 million first-lien term loan add-on. It will use excess cash proceeds to pay fees and expenses. - The company's profitability and cash flow generation improved in fiscal year 2023, resulting in S&P Global Ratings-adjusted debt to EBITDA of about 6.4x. It also repaid $26 million of its second-lien debt during the year. We forecast S&P Global Ratings-adjusted leverage will decline to about 6x at fiscal year-end 2024 (ending December 2024), driven by continued growth in profitability. - As a result, we raised our issuer credit rating on Visual Comfort to ' B' from 'B-'. - Concurrently, we raised our issue-level ratings on the company's first-lien term loan (including the $275 million add-on) to 'B' from 'B-'. The recovery rating remains '3', reflecting our estimate of meaningful (50%-70%;...

Research Update