U.S.-based arts and crafts specialty retailer The Michaels Companies Inc. (Michaels) plans to issue $500 million of senior unsecured notes due 2027 to repay its existing $510 million senior subordinated notes due 2020. On June 17, 2019, S&P Global Ratings affirmed its 'BB-' issuer credit rating on Michaels and its 'BB+' issue-level and '1' recovery rating on the company's term loan. At the same time, we are assigning our 'B' issue-level and '6' recovery rating to the company's new proposed senior unsecured notes. The stable outlook reflects our expectation the company will maintain adjusted funds from operations (FFO) to debt in the mid- to high-teens percent range over the next 12 to 24 months while generating approximately $300 million to
