Moody's: No change for Li & Fung

Moody's Investors Service said it said that Li & Fung Ltd.'s A3 issuer and senior unsecured bond ratings are unaffected by its announced acquisition of Wear Me Apparel, LLC.

The outlook is stable.

Li & Fung said it expects to pay $101.8m in cash upon completion of the transaction.

Wear Me Apparel will be one of Li & Fung's largest acquisitions in recent years, in terms of both its revenue contribution and total purchase consideration, Moody's said.

The agency noted that the upfront cash payment will be conserved by structuring the payment consideration in stages and it also will have been pre-funded by previous equity placements, such that this acquisition will not negatively impact Li & Fung's credit profile.

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