Research Update: YS Garments Inc. Assigned 'B' Rating, Outlook Stable; Revolving Credit And Term Loan Facilities Rated 'B'

Blue Point Capital Partners and certain co-investors have reached an agreement to acquire a majority ownership in YS Garments Inc. (Next Level Apparel), a U.S.-based provider of activewear to the fashion basics segment of the wholesale wearables promotional products industry. The existing management will retain a minority share going forward by rolling over their equity. The transaction will increase the company's leverage to the low-5x area on a pro forma basis. We are assigning our 'B' corporate credit rating to YS Garments Inc., the proposed borrower and financial reporting entity. The outlook is stable. We are also assigning a 'B' issue-level rating and a '3' recovery rating to the company's proposed $50 million revolving credit facility and $330 million term

...+ Blue Point Capital Partners and certain co-investors have reached an agreement to acquire a majority ownership in YS Garments Inc. (Next Level Apparel), a U.S.-based provider of activewear to the fashion basics segment of the wholesale wearables promotional products industry. The existing management will retain a minority share going forward by rolling over their equity. + The transaction will increase the company's leverage to the low-5x area on a pro forma basis. + We are assigning our 'B' corporate credit rating to YS Garments Inc., the proposed borrower and financial reporting entity. The outlook is stable. + We are also assigning a 'B' issue-level rating and a '3' recovery rating to the company's proposed $50 million revolving credit facility and $330 million term loan facility. + The stable outlook reflects our expectation that Next Level will continue to improve its operating performance as supported by volume growth from recurring distributor purchases and improve its profitability...

Research Update