Moody’s rates Restoration Hardware, loan Ba2

Moody's Investors Service said it assigned ratings to Restoration Hardware, Inc., including a Ba2 corporate family rating, Ba2-PD probability of default rating and a speculative grade liquidity rating of SGL-1.

In addition, Moody's assigned a Ba2 rating to the company’s proposed $1.5 billion first-lien term loan.

The outlook is stable.

Proceeds from the $1.5 billion term loan will be used to fully repay 2023 and 2024 convertible notes and for general corporate purposes.

“RH's Ba2 CFR is supported by governance considerations particularly an expectation that RH will maintain balanced financial strategies that support maintaining a moderate level of funded debt, solid credit metrics and very good liquidity including addressing its debt maturities in a timely manner,” the agency said in a news release.

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