S&P: Jo-Ann Stores LLC's New $850 Million Term Loan Assigned 'B' Issue-Level And '3' Recovery Rating
The negative outlook on Jo-Ann Stores reflects our expectation for leverage to remain in the mid - to high-5x range over the next 12 months as the company continues to contend with soft operating performance trends. Despite EBITDA gains over the latest 12 months, the company has experienced declining same-store sales more recently because of increased competition, and we remain cautious about its ability to reverse those trends in the coming year. Overall, we expect earnings growth to be flat as improved expense management partially offsets negative sales trends. Jo-Ann Stores continues to maintain adequate liquidity, supported by positive free operating cash flow and access to a recently upsized $400 million ABL revolving credit facility.
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