Moody’s Investors Service placed Boardriders, Inc.’s debt ratings on review for upgrade following the announcement that Authentic Brands Group (ABG) has made a binding offer to acquire the company. The report revealed the purchase price is approximately $1.25 billion.
The Boardriders ratings on review include its Caa2 Corporate Family Rating (CFR), Caa2-PD Probability of Default Rating (PDR), Caa1 senior secured super-priority credit facility rating, and Caa3 senior secured bank credit facility rating.
Moody’s expects Boardriders’ debt will be fully paid off at closing, since the company’s credit agreements include a change of control provision, and the acquisition consideration substantially exceeds the company’s $740 million of outstanding debt as of January 31, 2023. Moody’s will withdraw all of Boardriders’ ratings upon full extinguishment of the company’s debt. The transaction is expected to close in Q3 2023.
Boardriders’ ratings had been placed on review for upgrade based on its likely acquisition by Authentic Brands Group (ABG Intermediate Holdings 2 LLC, B2 positive), which has a stronger credit profile.
Boardriders’ brands include Quiksilver, Billabong, Roxy, DC Shoes, RVCA, and Element. The company is majority owned by funds managed by Oaktree Capital Management, L.P. Revenue was approximately $1.8 billion for the twelve months ended January 31, 2023.
Photo courtesy Boardriders
