Recovery Report: Focus Brands Inc.'s Recovery Rating Profile Feb 12
Standard & Poors, February 2012
Abstract
In conjunction with the dividend recapitalization of Atlanta-based Focus Brands Inc., Standard & Poor's Ratings Services has assigned preliminary recovery and issue-level ratings to the company's proposed first- and second-lien senior secured credit facilities. We simulate a default occurring in 2015 due to a steep decline in revenue and EBITDA from protracted economic volatility and reduced consumer discretionary spending, as well as significant margin erosion from increased competitive pressures. We believe the company would reorganize in the event of a default because of the good recognition of its portfolio of brands as well as its broad geographic reach. We expect Focus Brands' proposed capital structure to consist of a $15 million revolving credit facility due 2017, a $290 million first-lien...
Companies mentioned in this report are: Focus Brands Inc.
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Full Analysis
Focus Brands Inc.
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