S&P Global Ratings raised its debt ratings on Fanatics Collectibles Intermediate Holdco, Inc., following the recent full repayment of the unit’s senior secured term loan.
Fanatics Collectibles, a subsidiary of Fanatics, Inc., is a licensee, producer, designer, and seller of physical and digital trading cards, sports memorabilia, and a manufacturer of physical and digital trading cards. It has secured exclusive licensing arrangements with national professional sports leagues, including the MLB, NFL, and NBA, as well as related players’ associations, to produce physical and digital trading cards and other collectibles.
Fanatics Collectibles’ debt is separate from Fanatics, Inc.
S&P raised its issue-level rating on Fanatics Collectibles’ senior secured credit facility to ‘BB’ from ‘BB-‘. It has also revised its recovery rating to ‘2’ from ‘3’. The ‘2’ recovery rating indicates its expectation for substantial (70 percent to 90 percent; rounded estimate: 75 percent) recovery in the event of a payment default.
S&P stated that, “following the recent full repayment of its senior secured term loan, the facility consists solely of a $600 million cash-flow revolver, due in April 2028. The repayment of the senior secured term loan improved the remaining senior secured lenders’ recovery prospects.”
Image courtesy Fanatics Collectibles
