Moody’s rates G-III Apparel loan B1

Moody's Investors Service said it assigned a Ba3 corporate family rating and a Ba3-PD probability of default rating to G-III Apparel Group, Ltd.

The agency also assigned a B1 rating to the company's proposed $350 million senior secured term loan and an SGL-3 speculative grade liquidity rating.

The outlook is stable.

On July 25, G-III announced that it entered into a definitive agreement to acquire Donna Karan International, Inc., parent of the Donna Karan and DKNY brands, from LVMH Moët Hennessy Louis Vuitton (LVMH), in a transaction valued at $650 million, subject to customary adjustments at closing.

The transaction is expected to close in late 2016 or early 2017, and will be financed with proceeds from the proposed $350 million secured term loan along with $220 million of borrowing under a proposed $650 million asset-based revolver, a $75 million junior secured seller note and $75 million of G-III equity.

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