Moody's rates new Elizabeth Arden notes B3

Moody's Investors Service said it has assigned Elizabeth Arden Inc. a B3 rating for its proposed $150 million senior subordinated notes due 2014, confirmed the company's B1 senior implied rating with a stable outlook, and placed the company's B3 senior unsecured notes on review for possible upgrade.

Moody's also placed the company's B1 rating on its senior secured notes on review for possible downgrade.

Moody's said the rating confirmation reflects Elizabeth Arden's proposed and executed capital transactions, which will substantially reduce its interest expense burden and improve its credit protection measures, and therefore increase its ability to withstand volatility in its business.

The divergent review actions on the company's secured and unsecured notes reflect the terms of the proposed transactions, which are likely to benefit the unsecured notes by substantially reducing the higher priority secured notes, while any remaining secured notes would have substantially diminished collateral interests and contractual protections.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.