On December 8, 2020, S&P Global Ratings raised its rating on Outerstuff to CCC and its senior secured term loan rating also to CCC. The upgrade reflects the Company’s recently restructured debt and licensing agreements but still high leverage and less than adequate liquidity. The ratings agency expects the Company will generate negative free cash flow in 2021 due to high working capital needs to replenish inventory. Despite profitability improvements due to renegotiated league contracts, S&P believes Outerstuff's liquidity will be pressured over the next 12 months. At the end of October, the Company and its lenders agreed to extend its term loan to December 2023 from July 2021 and end the forbearance period. Outerstuff also successfully renegotiated its contracts with major sports leagues, including the National Football League.

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