Limited Brands Inc. (LTD) plans to raise $500 million in senior notes, due 2019, through the private placement route.
The company said that proceeds from the placement will be utilized for reducing debt and for general corporate purposes.
The specialty retailer’s performance has been affected by the continuing slowdown in discretionary spending by consumers, which caused May same-store sales to contract 7% year over year.
Limited Brands’ corporate rating was cut further into junk territory by Moody’s last month on weak sales and earnings results. The agency, however, did highlight the company’s sound liquidity position in its report.
Shares of the Zacks #3 Rank (“Hold”) company have slipped more than 2% on volume of almost 2 million, which is lower than the average daily volume of about 4.8 million.
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