Victoria's Secret&Co.'s Proposed $500 Million Senior Unsecured Notes Due 2029 Rated 'B+' (Recovery Rating: '5')

NEW YORK (S&P Global Ratings) June 29, 2021--S&P Global Ratings today assigned its 'B+' issue-level rating and '5' recovery rating to U.S.-based specialty apparel retailer Victoria?s Secret&Co.'s (VS) proposed $500 million senior unsecured notes maturing in 2029. The '5' recovery rating indicates our expectation for modest (10%-30%; rounded estimate: 20%) recovery in the event of a payment default. The company plans to use the proceeds from this issuance, along with the proceeds from its previously announced $500 million first-lien term loan B, to return capital to Bath and Body Works following the completion of its spin-off as an independent publicly traded company. Our 'BB-' issuer credit rating and stable outlook on VS are unchanged and reflect our expectation

...Simplified waterfall - Net EV after 5% administrative costs: About $1.1 billion - Revolver-related claims*: $470 million (not rated) - Senior secured term loan claims*: $500 million - --Recovery expectations: 90%-100% (rounded estimate: 95%) - Senior unsecured claims and non-debt unsecured claims*: $630 million - --Recovery expectations: 10%-30% (rounded estimate: 20%) *All debt amounts include six months of prepetition interest....

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