Moody’s Investors Service amended its debt ratings on West Marine following the retailer’s distressed exchange of all of its debt into equity as announced by the company on September 18.
As reported, West Marine on September 18 successfully consummated a transaction that provides West Marine with liquidity and significantly reduced total debt to strengthen the company’s balance sheet and financial profile. The agreement was supported by 100 percent of the holders of the company’s funded debt obligations and West Marine’s current principal equity holder, L Catterton.
Moody’s appended a limited default (LD) designation to the Caa2-PD Probability of Default Rating (PDR) of Rising Tide Holdings, Inc., the parent name of West Marine, changing it to Caa2-PD/LD.l
Subsequently, Moody’s has withdrawn West Marine’s ratings including its Caa2 corporate family rating (CFR) and Caa2-PD/LD probability of default rating as well as its Ca-backed senior secured first lien term loan, C backed senior secured first lien term loan and C backed senior secured second lien term loan ratings. The outlook was changed to rating withdrawn from negative.
Moody’ said, “Moody’s appended the LD to West Marine’s PDR because the company consummated a distressed exchange transaction that resulted in all of its existing Moody’s rated funded debt being exchanged into equity.
Moody’s has withdrawn all of its ratings on West Marine because the company’s Moody’s rated debt no longer exists following the distressed exchange.
“Rising Tide Holdings, Inc. is a specialty marine aftermarket retailer that operates 233 hub stores in the US and Puerto Rico under the West Marine brand name as well as two e-commerce websites reaching consumers and professional customers. West Marine is controlled by investment funds affiliated with L Catterton.”
