Lands' End rating rises after $100 million voluntary debt prepayment

By Devika Patel

Knoxville, Tenn., June 4 – Lands' End, Inc. paid down $100 million of term loan debt in the quarter, garnering a nod from S&P in the process.

“We voluntarily prepaid $100 million of our term loan with excess cash on hand, further strengthening our balance sheet,” president and chief executive officer Jerome Griffith said Tuesday on the company’s earnings conference call for the fiscal first quarter ended May 3.

“We’re also pleased to note that S&P upgraded our overall corporate and term loan credit rating to a B from a B- in early May,” executive vice president, chief operating officer, treasurer and chief financial officer James Gooch said on the call.

“The upgrade was based not only on our debt prepayment but also S&P’s stated expectation that operating performance will continue to improve,” Gooch said.

Cash and cash equivalents were $40.22 million as of May 3, compared with $193.41 million as of Feb. 1.

Net long-term debt was $381.5 million as of May 3, compared with $482.45 million as of Feb. 1.

Lands’ End is a Dodgeville, Wis.-based retailer of casual clothing, accessories, footwear and home products.

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