S&P: Michaels unchanged

Standard & Poor’s said it Michaels Stores Inc.’s ratings are unchanged following the company’s $250 million proposed increase to its existing $260 million 5 7/8% senior subordinated notes due Dec. 15, 2020.

The rating on the senior subordinated notes remains at CCC+ and the recovery rating is 6, which indicates 0 to 10% expected default recovery.

This debt issuance, along with the pending issuance of senior secured term loan, will be used to fully repay the existing 7¾% senior notes.

The closing of the secured term loan is contingent on an initial public offering, S&P said.

The agency said it plans to withdraw the ratings on the existing senior notes when Michaels repays them with proceeds from the new debt issuances.

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