Moody’s ups Spencer Gifts, Spirit loan to B1

Moody's Investors Service said it upgraded the rating on Spencer Gifts LLC's and Spirit Halloween Superstores LLC's proposed senior secured term loan to B1 from B2 following the company's announcement of a change in its proposed financing structure.

At the same time, the agency affirmed SSH Holdings, Inc.'s B2 corporate family rating, B2-PD probability of default rating and the Caa1 rating on its outstanding HoldCo PIK toggle notes.

The outlook remains stable.

Moody’s said the upgrade reflects the support provided by the remaining $130 million to $135 million HoldCo notes, as compared to the original structure, which contemplated fully redeeming them. The change in the proposed financing does not materially affect total debt, and modestly raises pro-forma interest expense.

The term loan decreases to $225 million from the originally proposed $360 million, and only $30 million to $35 million of the HoldCo notes will be redeemed, compared to the full $165 million repayment originally planned.

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