TJX receives strong rating on expected $750M note
TJX Cos. announced Monday that it plans to issue $750 million in notes to pay off previous financial obligations.
The Framingham-basedparent of T.J. Maxx, Marhsalls and Home Goods stores received an A3 rating from Moody’s Investors Service (equivalent to a A- from S&P or Fitch) on the proposed notes, which would be due in 2021. The notes have an annual interest rate of 2.75 percent, according to the company, and are expected to close Thursday.
Notes are a financial instrument consisting of a promise to pay, and are often used to provide working capital.
Proceeds from the latest notes will be used to repay the remainder of a previous batch of notes totaling $400 million, the company said. Those notes have an interest rate of 4.2 percent and are due in August 2015.
Moody’s said its relatively strong rating on the notes reflects TJX’s stable operating performance, flexible supply chain, position in the off-price retailer market and the sectors relative resiliency to economic downturns. The rating is tempered by TJX’s narrow sales concentration in apparel and home goods, as well as its minimal e-commerce presence, Moody’s said.
WBJ Web Partners
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