Moody’s: Container Store unchanged

Moody's Investors Service said that Container Store, Inc.'s (B2 positive) proposed term loan repricing and maturity extension is credit positive because it will improve interest coverage and liquidity, however it has no impact on the company's ratings or outlook at this time.

Container Store launched a repricing of its $292.5 million term loan to Libor plus 500 basis points from Libor plus 700 bps, with a maturity extension to 2023 from 2021.

The agency said the transaction is leverage neutral, however the reduced interest rate will modestly improve Moody's-adjusted EBIT/interest expense to 1.5 times.

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