TEXT-S&P: New Academy Finance note rating unaffected size increase

Fri Dec 14, 2012 4:49pm EST

Dec 14 - Standard & Poor's Ratings Services today said that its ratings on
Katy, Texas-based New Academy Finance Co. LLC and subsidiaries are unaffected by
the upsizing of the recently rated holding company senior notes. Academy
increased the size of the notes to $500 million from the proposed amount of $400
million. The additional proceeds from the senior notes will be used for a larger
dividend. Pro forma leverage remains in the high-6x area. The rating on the
notes is 'CCC+' with a recovery rating of '6', indicating our expectation for
negligible (0% to 10%) recovery for lenders in the event of a payment default. 

The corporate credit rating on New Academy Finance Co. LLC is 'B' and the 
outlook is stable.
FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.