S&P cuts Cirque du Soleil

S&P said it downgraded Cirque du Soleil and its first-lien debt to D from CCC- and CCC, respectively. The agency also cut the second-lien credit facility to D from C.

“We believe Montreal-based theatrical and live entertainment company Cirque Du Soleil Group did not make principal and interest payments due March 31 on its first-lien credit facility, and did not make the interest payment due March 31 on its second-lien credit facility, which constitutes a default under our criteria,” said S&P in a press release.

“We do not expect the company to make payments within the five-day grace period. In addition, we expect the event of default on the first-lien term loan will trigger a cross default under provisions in the second-lien term loan credit agreement. It is our understanding that prior to default Cirque had $100 million drawn on the revolving credit facility,” said S&P.

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