S&P cuts Diamond Sports

S&P said it downgraded Diamond Sports Group LLC’s senior secured second-lien notes to D from CCC- and senior unsecured notes to D from C. The agency also cut its issuer ratings for DSG and its parent Diamond Sports Holdings LLC to D from CCC-.

DSG reported it will not make the about $140 million in interest payments on its 5 3/8% senior secured second-lien notes due in 2026, with $3 billion outstanding, 5 3/8% senior secured third-lien notes due in 2026, with $10 million outstanding, and 6 5/8% senior unsecured notes due in 2027 with $1.7 billion outstanding scheduled to be paid on Feb. 15.

“We do not expect the company to make its interest payments within the 30-day grace period to preserve financial flexibility. DSG is discussing strategic alternatives with creditors and other key stakeholders, which we believe will likely result in a comprehensive debt restructuring or bankruptcy filing,” S&P said in a press release.

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