Moody's assigns B&M notes Ba3

Moody's Investors Service said it assigned a Ba3 rating to B&M European Value Retail SA's planned £250 million of five-year senior secured notes.

The company will use the proceeds and the proceeds from new bank facilities to refinance the company’s 4 1/8% senior secured notes due 2022 and bank facilities. “Moody's expects the transaction to be broadly leverage neutral,” the agency said in a press release.

The company intends to issue a £300 million term loan A and a new £150 million revolving credit facility. The notes and the new loan facilities will rank pari passu The security will consist of share pledges of the guarantors, fixed and floating charges over substantially all of the guarantors' and issuer's property and assets in England and pledges over certain bank accounts.

The unrated bank facilities will be issued by B&M European Value Retail Holdco 4 Ltd., the same entity currently holding the group bank debt and guaranteed by material subsidiaries representing 80% of consolidated group adjusted EBITDA, Moody’s said.

The company's Ba3 corporate family rating and stable outlook are unaffected by the planned issuance, the agency said.

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