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I AGREE
23 Mar 2010
Approximately $400 million of rated debt affected
New York, March 23, 2010 -- Moody's Investors Service today assigned a Ba3 Corporate Family
Rating and a Ba3 Probability of Default Rating to Bass Pro Group,
LLC ("Bass Pro"). Moody's also assigned a B1
rating to the company's proposed $400 million secured Term
Loan B facility. The rating outlook is stable. The ratings
assigned are based on the terms and conditions as advised to Moody's
and are subject to receipt of final documentation.
Bass Pro's Ba3 Corporate Family Rating reflects the strength of
the company's "Bass Pro Shop" brand, its good
market position in the regions where it operates, and participation
in the outdoor sports market which we consider a relatively stable segment
of the specialty retail industry. The rating reflects Bass Pro
Shop' somewhat limited overall scale, with a current base
of 55 stores, as well as the challenges inherent in the highly cyclical
boat industry, which represents around 15% of the company's
overall revenues. The rating also reflects the company's
moderately high financial leverage. Although leverage is high for
the Ba3 rating, it is Moody's expectation that the company
will reduce leverage to more appropriate levels in the year ahead.
The B1 rating assigned to the proposed secured Term Loan B facility reflects
its secured position, taking into consideration that there are other
debts in the capital structure (including its proposed $300 million
asset based revolver - not rated by Moody's) that will have
a prior security interest in certain of the company's assets.
The stable rating outlook reflects Moody's expectations that the
company will continue to exhibit overall revenue and margin stability
while utilizing free cash flow to reduce debt and leverage to levels more
appropriate to its rating.
The following ratings were assigned:
Corporate Family Rating at Ba3
Probability of Default Rating at Ba3
$400 million senior secured Term Loan B due 2015 at B1 [LGD
5, 70%]
The principal methodology used in rating Bass Pro Group LLC was Moody's
Global Retail Industry rating methodology published in December 2006 and
available on www.moodys.com in the Rating Methodologies
sub-directory under Research and Rating tab. Other methodologies
and factors that may have been considered in the process of rating these
issuers can also be found in the Rating Methodologies subdirectory on
Moody's website.
Headquartered in Springfield, Missouri, Bass Pro Group LLC
operates "Bass Pro Shops", a retailer of outdoor recreational
products, through 55 stores in the US and Canada. Through
"Tracker Marine" the company is a manufacturer and retailer
of recreational boats and related marine products under brands including
"Tracker", "Mako", "Tahoe"
and "Nitro". The company also owns the Big Cedar Lodge.
Total revenues exceed $2 billion.
New York
Scott Tuhy
Vice President - Senior Analyst
Corporate Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
New York
Peter H. Abdill, CFA
Managing Director
Corporate Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
Moody's assigns Ba3 Corporate Family Rating to Bass Pro Group
No Related Data.
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