| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers N > Headlines for New TMW TopCo, Inc. > News item |
Moody's gives Men's Wearhouse's loan B3
Moody's Investors Service said it assigned a B3 rating to the Men's Wearhouse, LLC's $25 million add on senior secured priority term loan due 2025 and changed the company's outlook to negative from stable.
Proceeds along with $50 million of new junior-lien convertible notes due 2024, not rated by Moody's, were used to repay $30 million of borrowings under the company's asset-based revolving credit facility due 2024 with remaining proceeds placed in a restricted cash account held by New TMW MidCo LLC. The company can withdraw the proceeds as long as pro forma liquidity is less than $87.5 million, which is the threshold under the takeback and add-on priority term loan facility to exercise the PIK interest option, with any remaining proceeds to be released on Dec.2. As part of the transaction, New TMW TopCo, Inc. and New TMW MidCo LLC were added as guarantors.
“While the added liquidity is credit positive for Men's Wearhouse, the transaction highlights the ongoing risks and uncertainties around the pace of recovery from the coronavirus pandemic, including easing of restrictions and the recovery in consumer demand. Thus, the outlook change to negative reflects the risk that continued weak demand for men's tailored clothing and rentals will further impact the company's ability to drive a recovery in operating performance, cash flow and liquidity,” Moody’s said in a press release.
Concurrently, Moody's affirmed the company's ratings, including the Caa1 corporate family rating, the Caa1-PD probability of default rating, the $75 million senior secured priority term loan due 2025’s B3 rating and the Caa1 rating on the $365 million takeback senior secured term loan due 2025.
© 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.