Fitch rates New Look notes B, CCC

Fitch Ratings said it assigned an expected rating of B with recovery rating of RR3 to New Look Secured Issuer plc’s planned seven-year £1 billion senior secured notes.

The agency also said it assigned an expected CCC with recovery rating of RR6 to the planned eight-year £200 million senior notes to be issued by New Look Senior Issuer plc.

Following the announced acquisition of New Look Retail Group by Brait SA, these transactions will recapitalize the company and refinance all of the group’s outstanding notes and payment-in-kind debt.

Upon completion of this refinancing, Fitch said it expects to affirm New Look Retail Group Ltd.’s long-term issuer default rating at B- with stable outlook.

The expected senior secured and senior instrument ratings reflect an expectation that recoveries for creditors will be maximized in a going-concern restructuring, rather than in liquidation due to the fairly asset-light nature of the business, Fitch said.

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