Fitch: Levi Strauss notes BB

Fitch Ratings said it assigned a BB with recovery rating of RR4 to Levi Strauss & Co.'s €450 million issue of private placement senior unsecured notes, which are expected to close in the next several weeks.

The proceeds from the issue, together with cash on hand, will be used to repay the company's $525 million of 6 7/8% senior notes due 2022.

The company has produced improving top line results with 3% growth recorded in fiscal 2016, following 1% growth in 2015 and 3% growth in 2014, Fitch said.

From 2011 to 2013, the company grew EBITDA 27% from $463 million to $590 million on a 2% sales decline, the agency said.

Fitch said it projects constant currency EBITDA growth over the next two- to three-years will be in the 3% to 4% range on 1% to 2% revenue growth and some benefit from its cost cutting initiatives.

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