Moody’s rates Men’s Wearhouse loan B1

Moody’s Investors Service said it assigned a B1 rating to Men’s Wearhouse LLC’s new $550 million term loan.

“The new senior secured term loan B is rated B1 reflecting that it has a first lien on all assets of the company, except accounts receivable and inventory on which it has a second lien behind the $400 million asset-based revolving credit facility. It also reflects the term loans priority position ahead of more junior claims in the capital structure such as leases and accounts payable,” Moody’s said in a press release.

The loan along with a preferred equity raise and borrowings under the asset-based revolving credit facility will be used to fund Men's Wearhouse's planned share repurchases.

The outlook is stable.

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