Moody's ups Levi Strauss, rates notes B1

Moody's Investors Service said it upgraded Levi Strauss & Co.'s corporate family rating to Ba3 from B1.

Moody's also upgraded the company's various unsecured notes to B1 from B2 and assigned a B1 rating to the company's proposed $140 million add-on to its 2022 senior unsecured notes.

The outlook is stable.

Levi Strauss is issuing $140 million of add-on notes to its existing $385 million senior unsecured notes due 2022.

Proceeds from the new notes, coupled with available cash balances and drawings under the company's (unrated) $850 million asset based revolver are expected to prepay in full the company's $325 million senior unsecured term loan due in April 2014.

Levi Strauss disclosed that subsequent to its fiscal year end it has prepaid roughly $75 million of this term loan from available cash.

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