Sweetwater Borrower LLC Assigned 'B' Issuer Credit Rating, Outlook Stable; New Debt Rated

U.S.-based e-commerce business focused on musical instruments and pro audio equipment Sweetwater Borrower LLC entered into a definitive agreement in which Providence Equity Partners will acquire the company. To partially fund the transaction, Sweetwater plans to issue a $638.5 million senior secured term loan B due in 2028, increasing S&P Global Ratings-adjusted leverage to the mid-6x area in 2021 from limited leverage today. We assigned our 'B' issuer credit rating to Sweetwater. We also assigned our 'B' issue-level rating and '3' recovery rating to the proposed credit facilities, which consist of the term loan due 2028 and a $100 million revolving credit facility due 2026. The stable outlook reflects our expectation that operating performance will improve over the next 12

...July 22, 2021 - U.S.-based e-commerce business focused on musical instruments and pro audio equipment Sweetwater Borrower LLC entered into a definitive agreement in which Providence Equity Partners will acquire the company. - To partially fund the transaction, Sweetwater plans to issue a $638.5 million senior secured term loan B due in 2028, increasing S&P Global Ratings-adjusted leverage to the mid-6x area in 2021 from limited leverage today. - We assigned our 'B' issuer credit rating to Sweetwater. - We also assigned our 'B' issue-level rating and '3' recovery rating to the proposed credit facilities, which consist of the term loan due 2028 and a $100 million revolving credit facility due 2026. - The stable outlook reflects our expectation that operating performance will improve over the next 12 months and credit protection measures will remain relatively steady. NEW YORK (S&P Global Ratings) July 22, 2021--S&P Global Ratings today took the rating actions listed above. We expect Sweetwater's...

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