Moody's rates Elizabeth Arden add-on notes B1

Moody's Investors Service said it assigned a B1 rating to Elizabeth Arden, Inc.'s proposed $100 million add-on to its senior unsecured notes due 2021.

The outlook remains stable.

Elizabeth Arden intends to use the net proceeds to repay revolver drawings.

The agency also affirmed Elizabeth Arden's Ba3 corporate family rating despite the recent sharp reduction in second quarter earnings guidance and Moody's expectation for revenue and earnings softness for the next several quarters.

Moody's said it nevertheless anticipates the Elizabeth Arden brand repositioning including efforts to grow its skin care offerings, cost reductions, and the company's international growth initiatives will lead to modestly higher EBITDA and lower leverage in fiscal 2015.

Elizabeth Arden's good liquidity position also provides flexibility to execute its operational improvement initiatives.

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