Moody's affirms Yankee Candle

Moody's Investors Service said it affirmed Yankee Candle Co., Inc.'s corporate family and probability-of-default ratings at B2, speculative grade liquidity rating at SGL-2, $775 million senior secured term loan at Ba3 (LGD2, 28%), $325 million eight-year senior notes at B3 (LGD5, 77%) and $200 million ten-year senior subordinated notes at Caa1 (LGD6, 93%).

The outlook remains stable.

The agency said the affirmation follows the modification of the company's capital structure: the senior notes were upsized to $325 million from $300 million and the senior subordinated notes were downsized to $200 million from $225 million.

Debt proceeds, together with common equity from the new owner Madison Dearborn Partners LLC, will be used to finance the leveraged buyout of Yankee Candle for $1.6 billion.

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