Moody's cuts TSA Stores loan to B1

Moody's Investors Service said it downgraded the rating on the newly-upsized senior secured $275 million term loan B of TSA Stores Inc. from B1 to B2 and affirmed the B2 corporate family rating. TSA Stores is a subsidiary of The Sports Authority Inc. The outlook is stable.

The agency said the downgrade is due to a change in the proposed capital structure resulting in $50 million of additional long term debt exacerbated by the $25 million reduction in equity to be contributed by affiliates of Leonard Green & Partners. Using Moody's standard analytic adjustments, funded leverage would be 6.7x and a fully drawn revolver would increase this to 7.8x.

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