Research Update: Danish Fine Jewelry Retailer Pandora A/S Assigned 'BBB' Rating; Outlook Stable; Proposed €500 Million Notes Rated 'BBB'

Danish jewelry retailer Pandora A/S plans to issue €500 million senior unsecured notes under a new €1.5 billion Euro Medium-Term Note (EMTN) program. Proceeds will repay the Danish krone (DKK) 3 billion term loan maturing in December 2023, repay the drawings outstanding on the credit lines, and fund general corporate purposes. We think Pandora will continue growing 4% on average annually over the next two-to-three years thanks to its loyal customer base, and its versatile and low-budget wristwear design concept, which is likely to continue appealing to customers despite the weakening economic climate and squeeze on discretionary spending. We think Pandora's consistently conservative financial policy, geographic diversity, and relatively flexible cost structure will support free operating cash flow (FOCF) over

...- Danish jewelry retailer Pandora A/S plans to issue 500 million senior unsecured notes under a new 1.5 billion Euro Medium-Term Note (EMTN) program. Proceeds will repay the Danish krone (DKK) 3 billion term loan maturing in December 2023, repay the drawings outstanding on the credit lines, and fund general corporate purposes. - We think Pandora will continue growing 4% on average annually over the next two-to-three years thanks to its loyal customer base, and its versatile and low-budget wristwear design concept, which is likely to continue appealing to customers despite the weakening economic climate and squeeze on discretionary spending. - We think Pandora's consistently conservative financial policy, geographic diversity, and relatively flexible cost structure will support free operating cash flow (FOCF) over the next two-to-three years, translating into S&P Global Ratings-adjusted debt to EBITDA of less than 1.5x. - We assigned our '###' long-term credit ratings to Pandora and our...

Research Update