Moody's affirms Takko

Moody's Investors Service said it affirmed the B3 corporate family rating and B2-PD probability of default rating assigned to Salsa Retail Holding Debtco 1 Sarl, a holding company of the Takko Fashion group, and the provisional B3 rating assigned to the proposed €525 million senior secured notes due 2019 to be issued by Takko Luxembourg 2 SCA. The outlook is stable.

The affirmations follow the company's decision to revise the capital structure supporting the proposed refinancing of Takko's bank loan debt. The original structure proposed the issuance of €450 million of senior secured notes due 2019 and €175 million of senior unsecured notes due 2019. The revised structure is expected to include an additional shareholder contribution from Takko's owner, Apax Partners, of €100 million and the issuance of €525 million of senior secured notes, with no unsecured notes.

The agency said it recognizes the positive impact of the revised capital structure on the company's leverage, as well as the support demonstrated by Apax Partners via the additional shareholder contribution, but this is not sufficient to change the ratings or outlook.

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