S&P rates Restoration Hardware loan BB

S&P said it assigned its BB issuer credit rating to Restoration Hardware Inc. (d/b/a RH) with a stable outlook.

At the same time, S&P assigned its BB issue-level and 3 recovery ratings to a proposed term loan.

S&P said Restoration Hardware plans to issue a $1.5 billion senior secured term loan to refinance its convertible notes.

“RH's proposed transaction moderately increases leverage, though we believe it will deleverage through organic growth over the next few years. The company is increasing its funded debt by about $800 million relative to the end of fiscal 2020, bringing S&P Global Ratings'-adjusted leverage up to the mid-2x area from 1.6x as of July 31, 2021,” S&P said in a news release.

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