S&P cuts recovery on American Greeting notes

Standard & Poor's said it revised its recovery rating on American Greeting Corp.'s 7 3/8% senior unsecured notes due 2016 and 7½% senior unsecured notes due 2021 to 4, indicating an expectation for average recovery in the event of payment default, from 3.

The issue-level rating remains BB+, the same as the corporate credit rating. The issue-level rating on the revolving bank facility due 2017 remains BBB, with a recovery rating of 1, indicating an expectation of very high recovery, S&P said.

The agency said the recovery rating revision follows the company's amendment of its revolving credit facility, which extended the maturity of the loan by 18 months to January 2017 and increased the size of the facility by $50 million, to $400 million. The increased facility size decreases the recovery prospects for the unsecured debt, S&P said.

© 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.