DUFF & PHELPS RATES SERVICE MERCHANDISE COMPANY, INC.'S $300 MILLION 9.0 PERCENT SENIOR SUBORDINATED DEBENTURES DUE DEC. 15, 2004 'BB'
NEW YORK, Feb. 9 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a credit rating of BB' (Double-B) to Service Merchandise Company, Inc.'s $300 million 9.0 percent senior subordinated debentures due Dec. 15, 2004. Proceeds from the issue will be used to refinance the company's outstanding $300 million 11.75 percent senior subordinated notes due 1996. The rating outlook is stable. The Duff & Phelps rating reflects a sustained improvement in financial protection measures since Service Merchandise's recapitalization in 1989. Though gross margins came under pressure in 1992, we expect that the company's internally generated cash flow will be more than sufficient to meet future budgeted capital needs and mandatory debt retirement. The rating also reflects the subordination of the debentures to $450 million of senior indebtedness at Jan. 2, 1993, and to short-term bank borrowings, which are used to support seasonal inventory needs. -0- 2/9/93 /CONTACT: Thomas P. Razukas or Scott J. O'Shea, 212-908-0200, both of Duff & Phelps/ (SME)
CO: Service Merchandise Company, Inc. ST: Tennessee IN: HOU SU: RTG
SM -- NY095 -- 4875 02/09/93 17:26 EST
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|Date:||Feb 9, 1993|
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