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(Alliance News) - Moody's Investors Service on Monday assigned a Ba2 rating to B&M European Value Retail SA's new proposed GBP250 million seven-year backed senior secured notes due 2028.
The Luxembourg-headquartered retailer said it intends to use money raised from the notes for general corporate purposes and to pay fees and expenses incurred in connection with the offering.
B&M noted that SSA Investments Sarl - which is beneficially owned by B&M Chief Executive Simon Arora and associates Bobby Arora and Robin Arora - intends to purchase 22.5% of the notes. Settlement of the transaction is expected to take place on or about November 24.
The ratings agency said B&M's current Ba2 corporate family rating and stable outlook are unaffected by the planned issuance.
B&M's Ba2 corporate family rating reflects the FTSE 100-listed company's focus on fast-growing retail niche markets, good scale, low-cost propositions and above-average profitability compared with traditional retailers.
"The Ba2 rating on the backed senior secured notes, in line with the corporate family rating, reflects the pari passu capital structure," Moody's said.
The outlook on B&M's rating is stable and reflects Moody's expectations that the company's profitability, cash flow generation and leverage will remain around current levels over the next 12-18 months.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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