S&P affirms Real Mex

Standard & Poor's said it affirmed the ratings on the Real Mex Restaurants Inc.

This action comes after the company priced $130 million of the senior secured notes at a 17.98% yield with a 14% coupon and 90% original issue discount, the agency said.

"We previously expected company to issue $110 million of notes to refinance its outstanding senior secured notes; as a result of the increased principal of $130 million, leverage is not materially different," said S&P credit analyst Charles Pinson-Rose.

Despite the higher principal, interest coverage and cash flows are actually slight better than originally contemplated, the agency said, noting that operating-lease-adjusted debt to EBITDA will be about 6.5x on a pro forma basis, while adjusted EBITDA interest coverage will be about 1.5x, up from 1.3x, as previously expected.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.