Moody’s rates Men’s Wearhouse notes B2

Moody's Investors Service said it assigned a B2 rating to Men's Wearhouse, Inc.’s proposed $600 million senior unsecured notes due 2022.

The company’s Ba3 corporate family rating and probability of default rating, as well as the Ba2 rating on the company's $1.1 billion senior secured term loan B, were affirmed.

The SGL-2 speculative grade liquidity rating was affirmed and the outlook remains stable.

Moody’s said the B2 rating assigned to the notes reflects Men’s Wearhouse’s unsecured position, ranking behind a meaningful amount of secured debt in the company's capital structure comprised primarily of the $1.1 billion senior secured term loan B and the $500 million secured asset based revolving credit facility.

Men's Wearhouse will use the proceeds from the notes, the $1.1 billion term loan and cash on hand to fund the acquisition of Jos. A. Bank Clothiers, Inc. for $1.8 billion and to fund fees and expenses associated with the transaction.

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