Research Update: Winebow Group LLC Downgraded To 'CCC' As Debt Maturities Approach Amid Economic And Market Uncertainty

U.S.-based wine and spirits distributor Winebow Group LLC faces refinancing risk as its unrated $135 million asset-based lending (ABL) revolving credit facility will become current on March 31, 2020, and its $230 million first-lien term loan becomes current at the start of July. The company also has a $130 million second-lien term loan which matures on Jan. 2, 2022 and will need to be addressed in the near-term. We believe the current market environment, including an eroding economic outlook because of the coronavirus pandemic, will impair Winebow's ability to refinance its capital structure on satisfactory terms before its upcoming maturities. We are lowering our issuer credit rating on Winebow to 'CCC' from 'CCC+'. At the same time, we are lowering

...- U.S.-based wine and spirits distributor Winebow Group LLC faces refinancing risk as its unrated $135 million asset-based lending (ABL) revolving credit facility will become current on March 31, 2020, and its $230 million first-lien term loan becomes current at the start of July. The company also has a $130 million second-lien term loan which matures on Jan. 2, 2022 and will need to be addressed in the near-term. - We believe the current market environment, including an eroding economic outlook because of the coronavirus pandemic, will impair Winebow's ability to refinance its capital structure on satisfactory terms before its upcoming maturities. - We are lowering our issuer credit rating on Winebow to '###' from '###+'. - At the same time, we are lowering our issue-level ratings on the company's first-lien term loan to '###' from '###+' with an unchanged recovery rating of '3' and its second lien term loan to '##' from '###-' with an unchanged recovery rating of '6'. - The negative outlook...

Research Update