Fitch has rated Burlington Coat Factory Warehouse Corp.'s (BCF) amended and extended six-year $1 billion term loan 'B-/RR4', one notch below the rating on the current $900 million term loan due May 2013. In addition, Fitch has rated the company's proposed new $500 million senior unsecured notes due 2018 'CC/RR6'. The Rating Outlook is Stable. A full rating list is shown below.
Proceeds from the offerings are expected to be used to repay a total of $1.25 billion in debt outstanding under the company's existing term loan facility due May 2013, 11.125% senior unsecured notes due April 2014, and Burlington Coat Factory Investment Holdings, Inc.'s (Parent) 14.5% senior discount notes due October 2014. The ratings on the senior unsecured notes and the discount notes will be withdrawn upon the closing of the transaction. The remaining proceeds are expected to be used toward making a contribution to the company's equity holders, paying related fees and expenses and for general corporate purposes. Pro forma for the proposed offerings, the company had approximately $1.5 billion of debt outstanding at July 31, 2010.