U.S. based grill manufacturer Weber LLC has agreed to combine with outdoor griddle manufacturer Blackstone Products Inc. (unrated) in a deleveraging transaction that would improve pro forma funds from operations (FFO) cash interest coverage closer to 2x. We expect the transaction will be all-equity funded, will repay working capital borrowings at Weber and outstanding borrowings at Blackstone. Therefore, we placed all ratings on Weber LLC, including the ?CCC+? issuer credit rating, on CreditWatch with positive implications pending regulatory approval of the transaction possibly in the first quarter of calendar 2025. The transaction will be funded exclusively with equity. Net proceeds would be used to pay existing Blackstone investors an equity consideration, pay fees and expenses, and repay debt working capital
