Moody’s rates Container Store loan B2

Moody’s Investors Service said it assigned a B2 rating to the Container Store, Inc.’s proposed $200 million senior secured term loan due 2026.

Concurrently, Moody’s changed the outlook to stable from negative and also affirmed the B2 corporate family rating, B2-PD probability of default rating and B2 rating on the first-lien term loan. The speculative-grade liquidity rating remains SGL-2.

Loan proceeds and balance sheet cash will be used to refinance its term loan due 2023 with $247 million outstanding and pay fees and expenses. The Container Store also plans to refinance its $100 million asset-based revolving credit facility with a new $100 million ABL due 2025, which will remain undrawn at close.

“The change in outlook to stable from negative reflects the significant improvement in the company’s performance in Q2 2021 and Moody’s expectation for continued growth over the next several quarters. The change in outlook also reflects the reduction in outstanding debt and maturity extension as a result of the refinancing transaction,” the agency said in a press release.

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