Moody's rates Yankee Candle notes Caa1

Moody's Investors Service said it assigned a Caa1 rating to Yankee Candle Co., Inc.'s proposed $450 million senior unsecured notes due 2018.

Proceeds from the notes along with Yankee Candle's proposed $950 million secured term loan due 2020 rated B1 will be used to refinance all of the company's existing debt ($842 million), repay a $315 million payment-in-kind note at YCC Holdings, LLC, and pay a $187 million dividend to Madison Dearborn Partners, LLC. Madison Dearborn owns YCC, which in turn owns Yankee Candle.

Moody's said the Caa1 rating on Yankee Candle's proposed senior unsecured notes considers its pro forma junior position to the company's $175 million asset-based loan revolver (not rated) and proposed $950 million secured term loan.

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