S&P puts Levi Strauss on positive watch

Standard & Poor's said it affirmed its B+ corporate credit rating on Levi Strauss & Co. and revised the outlook to positive from stable.

S&P also affirmed its B+ rating on all of the company's senior unsecured debt, including the 6 7/8% senior notes due 2022, which are being increased by $140 million through an add-on offering. The recovery ratings remain unchanged at 4, indicating an expectation for average (30% to 50%) recovery for noteholders in the event of a payment default.

Proceeds from the offering, together with the company's cash sources, will be used to repay the $324 million term loan due 2014.

"The outlook revision reflects our view that the company's credit metrics will continue to improve with declining debt levels and modest EBITDA growth," said S&P credit analyst Linda Phelps in a news release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.