Brunswick upgraded by Standard & Poor’s
Standard & Poor's Ratings Services said it upgraded its rating outlook on Brunswick (NYSE: BC), parent of Life Fitness, to stable from negative based on the belief that the company has adequate liquidity for next year.
"The outlook revision is based on our expectation that Brunswick's liquidity will be sufficient to carry it at least through 2010," Standard & Poor's credit analyst Andy Liu said in a statement. S&P also said the company has a minimal number of debt maturities coming up in the near term.
S&P affirmed its other ratings on Brunswick, including a corporate credit rating of B-, which is six notches into junk territory. The rating agency said the speculative rating reflects the sharp decline in Brunswick's profitability because of lower demand for boats -- its core business -- and slim prospects for a turnaround soon.
Collective Brands' Q3 profit falls
Collective Brands (NYSE: PSS), parent of Hind and Saucony, said its third-quarter profit dropped on adjustments related to the settlement of certain litigation and severance.
For the quarter ended Oct. 31, net earnings were $36.9 million, or $0.57 per diluted share, compared to $47.5 million, or $0.74 per diluted share.
Taking adjustments into account, the company said third quarter 2009 net earnings were $39.4 million, or $0.61 per diluted share, up $13.4 million, or 51.5 percent, versus the third quarter of 2008.
Net sales raised 0.5 percent to $867.0 million from $862.7 million last year.
Hanesbrands looks to secure $1.65 billion in new credit
Hanesbrands (NYSE: HBI), parent of Champion, said it plans to sell $500 million in senior notes in a public offering and change an existing senior secured credit facility to allow for $1.15 billion in new credit.
The company plans to use the proceeds from both transactions to refinance and repay outstanding debt as well as pay related fees.
Hanesbrands said the timing of the refinancing has not yet been determined but depends on factors including market conditions.
JPMorgan Securities, Banc of America Securities, HSBC Securities and Goldman Sachs & Co. are joint book-running managers of the notes offering. Barclays Capital, RBC Capital Markets and BB&T Capital Markets are co-managers.
--Compiled by Wendy Geister
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