Moody’s assigns to Levis notes Ba2

Moody’s Investors Service said it assigned a Ba2 rating to Levi Strauss & Co.’s planned $500 million of senior unsecured notes due 2031. The existing ratings are unchanged, including its Ba1 corporate family rating, Ba1-PD probability of default rating, Ba2 ratings on its unsecured notes and SGL-1 speculative grade liquidity rating.

Proceeds will be used with cash on hand to redeem $800 million of its $1 billion of unsecured notes due 2025 and to pay related fees and expenses.

“The transaction is a credit positive because in addition to partially extending its debt maturity profile, Levi will reduce debt by $300 million, resulting in an over one-half turn improvement in financial leverage and around $20 million of interest expense savings,” stated, Mike Zuccaro, a Moody’s vice president, in a press release.

The outlook is stable.

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