S&P Global Ratings raised its debt rating on Beach Acquisition Co. Parent LLC, doing business as Skechers U.S.A. Inc., on a proposed repricing of its term loans due in 2032.
S&P said in a statement, “We believe the proposed repricing transaction will be incrementally credit positive, reducing the interest rate 25-50 basis points, which translates into a $11 million-$15 million reduction in annual cash interest payments. In addition, we expect the total amount of the outstanding debt will remain the same.”
The rating agency further said it expects Beach Acquisition’s S&P Global Ratings-adjusted leverage will fall just below 5x in 2026 as Skechers “continues to expand its operations and improve adjusted EBITDA margin, supported by significant cost savings from supply chain improvements, improved buying power and corporate cost efficiencies.”
The debt is tied to 3G Capital‘s September 2025 acquisition of Skechers for approximately $9.4 billion.
S&P raised its rating on Beach Acquisition’s first-lien debt to ‘BB’ from ‘BB-’ and revised the recovery rating to ‘2’ from ‘3.’ All other ratings, including its ‘BB-‘ issuer credit rating on Beach Acquisition Co. Parent LLC, are unchanged.
Image courtesy Skechers
