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DISTRESSED DAILY: Authentic Brands Upsizes Deals As Well As Debt

Dec. 3, 2021, 1:28 PM

Authentic Brands Group has been ramping up its acquisitions over the years, leading to its 2.1 billion-euro purchase of sportswear brand Reebok from Adidas AG that’s expected to close early next year. That will increase its leverage, too.

The New York-based owner of Brooks Brothers, Forever 21 and celebrity names like Elvis is seeking almost $2.2 billion in financing for the purchase, a recapitalization and a $500 million distribution to existing shareholders, according to S&P Global Ratings.

S&P rates Authentic B, or five levels below investment grade, “given our expectation for leverage to remain more than 5x as the company ...

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