Moody's gives Men's Wearhouse loan Ba2

Moody's Investors Service said it assigned a Ba3 corporate family rating to Men's Wearhouse, Inc.

The agency also assigned a Ba2 rating to the company's proposed $1.1 billion senior secured term loan B financing and a SGL-2 speculative grade liquidity rating.

The outlook is stable.

Moody's said the Ba2 rating assigned to the new loan reflects its second lien on accounts receivable and inventory and a first lien on substantially all other assets. The rating also reflects the junior capital cushion provided by the expected $600 million of senior unsecured debt (via a bridge loan or senior unsecured note offering) in the company's capital structure, the agency said.

Men's Wearhouse will use the proceeds from the new term loan, cash on hand and $600 million of unsecured financing to fund the $1.8 billion acquisition of JoS. A Bank Clothiers, Inc. and to fund fees and expenses associated with the transaction.

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