Moody's rates rue21 acquirer loan B2

Moody's Investors Service said it assigned a B3 corporate family rating and a B3-PD probability of default rating to Rhodes Merger Sub, Inc., the acquirer of rue21, Inc.

Moody's also assigned a B2 rating to the company's proposed $533 million senior secured term loan B due 2020.

The outlook is stable.

On May 23, rue21 announced that it entered into a definitive agreement to be acquired by funds managed by Apax Partners for $42 per share in cash, with the transaction valued at about $1.1 billion. The transaction is expected to close in the third quarter of 2013, subject to approval by the majority of the stockholders unaffiliated with the SKM II funds, which collectively own approximately 30% of the outstanding shares of rue21, as well as customary closing conditions.

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