S&P gives Darden notes BBB

S&P said it assigned its BBB issue-level rating to Darden Restaurants Inc.'s proposed $300 million senior notes due 2048.

Darden commenced a tender offer to purchase for cash any and all of its outstanding 6% senior notes due 2035 and 6.8% senior notes due 2037. The company plans to use the proceeds from the new notes to fund the purchase of the recently announced tender offer and for general corporate purposes.

“We expect the operating performance at Darden to remain solid despite some general industry headwind in the casual dining space,” the agency said in a news release.

“In addition, we continue to expect the company to maintain its financial policy and adjusted leverage in the low- to mid-2x range.”

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