The Michaels Cos. Inc.'s Proposed $500 Million Senior Secured Notes Rated 'B+' - S&P Global Ratings’ Credit Research

The Michaels Cos. Inc.'s Proposed $500 Million Senior Secured Notes Rated 'B+'

The Michaels Cos. Inc.'s Proposed $500 Million Senior Secured Notes Rated 'B+' - S&P Global Ratings’ Credit Research
The Michaels Cos. Inc.'s Proposed $500 Million Senior Secured Notes Rated 'B+'
Published Sep 17, 2020
4 pages (1611 words) — Published Sep 17, 2020
Price US$ 150.00  |  Buy this Report Now

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Abstract:

NEW YORK (S&P Global Ratings) Sept. 17, 2020--S&P Global Ratings today assigned its 'B+' issue-level and '2' recovery ratings to Irving, Texas-based The Michaels Cos. Inc.'s proposed $500 million senior secured notes due in 2027. The '2' recovery rating indicates our expectation of substantial (70%-90%; rounded estimate: 70%) recovery in the event of a payment default or bankruptcy. Our issue-level and recovery ratings reflect the notes' pari passu ranking to the proposed $1.52 billion term loan. The facilities will be secured by a second-priority lien on the company's asset-based lending (ABL) facility collateral and a first-priority lien on other assets. The combined transaction will extend Michael's maturity profile and leave it with sufficient liquidity to execute its strategic initiatives while

  
Brief Excerpt:

...September 17, 2020 NEW YORK (S&P Global Ratings) Sept. 17, 2020--S&P Global Ratings today assigned its 'B+' issue-level and '2' recovery ratings to Irving, Texas-based The Michaels Cos. Inc.'s proposed $500 million senior secured notes due in 2027. The '2' recovery rating indicates our expectation of substantial (70%-90%; rounded estimate: 70%) recovery in the event of a payment default or bankruptcy. Our issue-level and recovery ratings reflect the notes' pari passu ranking to the proposed $1.52 billion term loan. The facilities will be secured by a second-priority lien on the company's asset-based lending (ABL) facility collateral and a first-priority lien on other assets. The combined transaction will extend Michael's maturity profile and leave it with sufficient liquidity to execute its strategic initiatives while managing persistent business volatility stemming from the COVID-19 pandemic. Pro forma for the term loan and senior secured notes issuance, the company will maintain over...

  
Report Type:

Ratings Action

Issuer
Michaels Cos. Inc. (The)
GICS
Specialty Stores (25504040)
Sector
Global Issuers
Country
United States
Region
United States
Format:
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "The Michaels Cos. Inc.'s Proposed $500 Million Senior Secured Notes Rated 'B+'" Sep 17, 2020. Alacra Store. May 18, 2025. <http://www.alacrastore.com/s-and-p-credit-research/The-Michaels-Cos-Inc-s-Proposed-500-Million-Senior-Secured-Notes-Rated-B-2515737>
  
APA:
S&P Global Ratings’ Credit Research. (). The Michaels Cos. Inc.'s Proposed $500 Million Senior Secured Notes Rated 'B+' Sep 17, 2020. New York, NY: Alacra Store. Retrieved May 18, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/The-Michaels-Cos-Inc-s-Proposed-500-Million-Senior-Secured-Notes-Rated-B-2515737>
  
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