Moody's rates Targus, loan B2

Moody's Investors Service said it assigned a B2 corporate family rating and a B2 probability of default rating to Targus Group International, Inc., along with a B2 rating to the $185 million senior secured term loan.

The outlook is stable.

The proceeds, along with about $25 million of borrowings under a new unrated $60 million asset-backed revolver and the existing European asset-backed revolver will be used to repay the existing term loan and revolver, Moody's said.

While the refinancing is essentially neutral from an overall financial leverage perspective, it improves the company's liquidity profile as it refinanced the late 2012 maturities, the agency said.

The ratings also reflect its improved operating performance and credit metrics due to an improving economy and its strong market position, Moody's said.

But the company's focus on new products can present a challenge as tablet devices may increasingly displace notebook and laptop computers, the agency added.

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