Sleep Country Canada Holdings Inc. Senior Unsecured Recovery Rating Revised To '3' From '4'

TORONTO (S&P Global Ratings) Jan. 22, 2025--S&P Global Ratings today revised its recovery rating on Sleep Country Canada Holdings Inc.'s C$450 million senior unsecured notes to '3' from '4'. The '3' recovery rating indicates our expectation for meaningful (50%-70%; rounded estimate: 65%) recovery in the event of a default. In December 2024, company completed the issuance to C$450 million unsecured notes, significantly higher than the proposed C$300 million and used the excess proceeds to repay a substantially larger portion of its senior term loan. We revised our recovery rating on Sleep Country's senior unsecured notes to reflect our expectation for greater enterprise value available to the unsecured debtholders in a simulated default relative to our previous assessment. Our 'BB-' issue-level

...January 22, 2025 TORONTO (S&P Global Ratings) Jan. 22, 2025--S&P Global Ratings today revised its recovery rating on Sleep Country Canada Holdings Inc.'s C$450 million senior unsecured notes to '3' from '4'. The '3' recovery rating indicates our expectation for meaningful (50%-70%; rounded estimate: 65%) recovery in the event of a default. In December 2024, company completed the issuance to C$450 million unsecured notes, significantly higher than the proposed C$300 million and used the excess proceeds to repay a substantially larger portion of its senior term loan. We revised our recovery rating on Sleep Country's senior unsecured notes to reflect our expectation for greater enterprise value available to the unsecured debtholders in a simulated default relative to our previous assessment. Our '##-' issue-level rating on the company's unsecured debt is unchanged. Sleep Country's operating performance for the nine months ended Sept. 30, 2024, was consistent with our expectations. During this...

Ratings Action