Moody’s ups J.Jill, rates loan B2

Moody's Investors Service said it upgraded Jill Acquisition LLC's (J.Jill) corporate family rating to B2 from B3 and probability of default rating to B2-PD from B3-PD.

Concurrently, Moody's assigned a B2 rating to the company's new senior secured term loan due 2028. The rating on the company's term loan due 2024 will be withdrawn.

The SGL-3 speculative grade liquidity rating is unchanged, and the outlook remains stable.

Proceeds from the new $175 million senior secured term loan and roughly $65 million of balance sheet cash were used to refinance the company's $222 million term loans due 2024 and pay for financing fees and expenses.

“The upgrades reflect the extension of J.Jill's term loan maturity to 2028 from 2024 as a result of the refinancing,” the agency said in a news release.

Moody's said it expects that the company will also extend the maturity of its asset-based revolver well ahead of its May 2024 expiration.

“In addition, J.Jill's lower debt levels and good performance in 2022 have improved its credit profile,” the agency said.

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