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Investing.com -- Celsius Holdings Inc. has secured a new $700 million term loan B that received a ’BB+’ issue-level rating from S&P Global Ratings.
The energy drink maker used the proceeds from the new loan along with $200 million of cash on hand to repay its existing $900 million term loan B facility. The new credit facility comes with an interest margin that is 75 basis points lower than the previous rate.
S&P Global Ratings also upgraded the company’s existing $100 million revolving credit facility to ’BB+’ from ’BB’. Both facilities received a ’1’ recovery rating, indicating an expected very high recovery (90%-100%) for lenders if a payment default occurs.
The ’BB-’ issuer credit rating for Celsius remains unchanged. According to S&P, the company’s second quarter results ending June 30, 2025, exceeded expectations due to strong demand for its recently acquired Alani Nu product line and Celsius returning to growth rates higher than industry averages.
S&P projects that Celsius will reduce its leverage ratio to approximately 3x by the end of fiscal year 2025.
The rating agency’s analysis included a simulated default scenario for 2029, which considered factors such as economic downturn, increased competition, poor integration execution, loss of key clients, and fluctuating input costs.
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