Moody's rates TFS notes B3

Moody's Investors Service said it assigned a definitive B3 corporate family rating to TFS Corp. Ltd. and a definitive B3 senior secured debt rating to the $150 million of guaranteed senior secured notes issue due 2018.

The outlook is stable.

The definitive rating on these debt obligations confirms the provisional rating assigned on May 2.

The proceeds from the offering will be used for potential land acquisitions and for general corporate purposes, including other Indian Sandalwood acquisition opportunities and potential corporate acquisitions.

The ratings reflect the company's reliance on potentially volatile revenue and cash flow generated from the sale of its investment products to retail and wholesale investors, uncertainty around the company's ability to continue to execute its strategy of increasing sales of its wholesale investment products and exposure to event and execution risk in relation to the company's Indian Sandalwood plantations and initial harvest expected in FY13, the agency added.

Balancing these concerns is the company's large plantation holdings expected to begin maturing from FY13 onwards, strong and growing demand for authentic and legally harvested Indian Sandalwood oil and heartwood, the high value of the company's Indian Sandalwood plantation assets and expected production as well as the company's vertically integrated operations, the agency added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.