Moody’s lifts PizzaExpress to positive view

Moody’s Investors Service said it affirmed the corporate family rating at B3 and probability of default rating at B2-PD of PizzaExpress Financing 1 plc, formerly Twinkle Pizza Holdings plc.

Moody’s also said it affirmed the B2 rating on the senior secured notes due 2021 issued by PizzaExpress Financing 2 plc and the Caa1 rating on the £200 million senior notes due 2022 issued by PizzaExpress Financing 1.

The outlook also was changed to positive from stable.

The outlook revision follows the proposed offering of £55 million additional notes, which will be part of the same series as the existing senior secured notes due 2021.

The proceeds will be used to finance the acquisition of Pizza Express (Hong Kong) Ltd., which currently operates 27 Pizza Express restaurants in China under a franchise agreement with the company, Moody’s said.

The positive outlook considers the company’s strong trading performance and de-leveraging since the leveraged buyout, the agency said.

Its de-leveraging pace, however, is expected to slow with growth rates returning to lower levels and capital expenditure increasing as the company rolls out new restaurants in China, Moody’s said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.