Samsonite International S.A. Senior Secured Issue-Level Rating Lowered To 'BB' (Recovery: '2') On Incremental Term Loan

NEW YORK (S&P Global Ratings) April 29, 2020--S&P Global Ratings today lowered its issue-level rating on Samsonite International S.A.'s senior secured credit facilities to 'BB' from 'BB+' and revised its recovery rating to '2' from '1' following Samsonite IP Holdings S.a.r.l and co-borrower Tumi Inc.'s proposed incremental $500 million term loan B issuance. This reflects the increase in the company's senior secured debt following the proposed offering. The '2' recovery rating indicates our expectation for substantial recovery (70%-90%; rounded estimate: 75%) in the event of a payment default. Samsonite IP Holdings S.a.rl. and Tumi Inc. are wholly owned subsidiaries of the group parent, Samsonite International S.A. The company intends to use the proceeds from these notes to add cash to

...The company's capital structure comprises: - A $850 million revolver due in 2025; - A $800 million term loan A due in 2025, ($797 million outstanding at the end of 2019); - A $665 million term loan B due in 2025, ($555 million outstanding at the end of 2019); - Incremental $500 million term loan B due in 2025; - 350 million of 3.5% senior unsecured notes due in 2026. Jurisdiction insolvency regimes - Samsonite International S.A. is a Luxembourg corporation. The company has assets in North America, Asia, Europe, and Latin America. We believe it would file for bankruptcy protection in the U.S. under the administration of the U.S. bankruptcy court system while entities abroad remain out of any insolvency proceedings with respect to local jurisdictions. Security and guarantee package - The issuer and the guarantors combined represented about 36.5% of fiscal-year 2019 adjusted EBITDA. For the purposes of our recovery analysis, we assume about 50% of EBITDA on a run-rate basis assuming the restoration...

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