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 ...

To read the full article log in.

Learn more about a Bloomberg Law subscription.