Playtex Products' bank debt sagged about a point last week after Standard & Poor's downgraded the company's senior secured bank loan rating to B from B+. The bank debt was quoted in the 991/2-100 range down from the 100-1001/2 range. No trades could be confirmed last week.
Playtex has a $125 million revolver and a $450 million "C" term loan. The company amended its credit facility last summer, providing for "more stringent financial covenants," according to company filings. A senior debt leverage ratio covenant was added at that time. Pricing on the term loan "C" was also increased to LIBOR plus 31/2% up from LIBOR plus 11/4% and pricing on the revolver increased from LIBOR plus 1% to LIBOR plus 4%.
Playtex reported lower net sales of $150.1 million in the third quarter of 2003 compared to $161.6 million during the same period last year. The company's EBITDA was also weaker during the third quarter of this year, clocking in at $23.412 million compared to $32.498 million in 2002. The company has $791 million in long-term debt. Glenn Forbes, Playtex's executive v.p. and cfo, did not return calls by press time.