Moody's affirms Elizabeth Arden, rates notes B1

Moody's Investors Service said it affirmed Elizabeth Arden Inc.'s Ba3 corporate family and probability of default ratings and assigned a B1 (LGD 5, 75%) rating to the company's proposed $225 million offering of 10-year senior unsecured notes.

The agency also affirmed its speculative grade liquidity rating of SGL-3.

The proceeds will be used to fund the company's tender offer of its existing 7¾% senior subordinated notes due January 2014.

Moody's also said it will withdraw the existing B1 rating of the company's senior subordinated notes upon successful completion of the transaction.

The outlook is stable.

The company's improved operating performance and stronger credit metrics reflect management's attention to cost cutting, significant investments in its brand portfolio and a gradual recovery in the global economy, Moody's said.

The proposed refinancing of the company's bank facility and subordinated notes eliminates a near-term maturity and enhances its liquidity profile, the agency said.

The ratings are supported by its critical mass of brands and customers and the company's historical success in revitalizing classic brands and introducing new celebrity and designer brands, Moody's said.

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