S&P cuts Carlson Travel

S&P said it downgraded Carlson Travel Inc. and its senior secured notes to CC from CCC after the company announced it entered a restructuring support agreement. The agency also lowered the senior notes to C from CC. The recovery ratings are unchanged.

The agreement will extend the maturities of its secured and unsecured notes by two years, extend the maturity of its revolver and add almost $250 million of liquidity partially funded by new higher priority notes purchased by certain noteholders.

The participants include the principal shareholder, the noteholders and the revolving credit facility lenders.

“We view the debt exchange, if completed, as distressed and tantamount to a default because it extends the maturity beyond the original promise and because the new notes financed by certain noteholders will effectively lower the debt repayment priority of the existing secured and unsecured notes,” S&P said in a press release.

The outlook is negative.

S&P cuts Martin Midstream

S&P said it downgraded Martin Midstream Partners LP and its senior unsecured notes due 2021 to CC from CCC-.

The downgrade follows the announcement Martin entered into a restructuring support agreement with beneficial holders of the company’s $364.5 million 7¼% senior unsecured notes due 2021, the agency said.

Midstream is offering a combination of cash, new secured second-lien notes due February 2025 and the right to acquire secured 1.5 lien notes due February 2024.

“We consider the transaction to be distressed, given the securities offered are less than the original amount with maturity extension. We also take into account the rating on the company prior to the announcement, current trading levels for the unsecured debt, and our view that the company would not have sufficient liquidity to retire the unsecured debt upon maturity in 2021,” S&P said in a press release.

S&P cuts Tupperware Brands

S&P said it lowered its ratings on Tupperware Brands Corp. to SD from CC and its $600 million of senior unsecured notes to D from C.

“The downgrade reflects Tupperware’s completion of a tender offer for about $97.6 million of its $600 million senior unsecured notes due June 1, 2021, at less than par. We view this transaction as distressed because the company is undergoing a business turnaround and could not refinance its bonds before they became current on June 1, 2020,” S&P said in a press release.

Though Tupperware hasn’t announced any plans for the remaining notes yet, S&P said it expects the company to pursue another restructuring or exchange on the notes.

S&P upgrades YRC

S&P said it raised YRC Worldwide Inc.’s issuer rating to CCC+ from CCC and affirmed the term loan’s CCC+ rating.

YRC announced the U.S. Treasury Department will lend it $700 million under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, and that it amended its term loan agreement to waive the minimum EBITDA covenant through December 2021.

“The upgrade reflects our view that YRC’s liquidity is improved,” S&P said in a press release.

YRC and its lenders agreed to the minimum EBITDA requirement resuming at $100 million for the 12 months ending Dec. 31, 2021, increasing to $150 million for March 31, 2022, and then to $200 million for June 30, 2022. Additionally, the company extended its revolver maturity to 2024 from 2021.

The outlook is stable.

Moody’s assigns RGIS Caa1

Moody’s Investors Service said it assigned ratings to RGIS Services, LLC following its debt restructuring, including a Caa1 corporate family rating, a Caa1-PD probability of default rating and a Caa1 senior secured term loan rating.

As part of its debt restructuring, RGIS converted its $448 million outstanding debt, comprised of a term loan due 2023 and revolver borrowings, into a new $200 million term loan due 2025 and common equity, Moody’s said.

The outlook is negative. The outlook reflects the risk of greater than anticipated permanent store closures and bankruptcies among RGIS’ customer base as well as the execution challenges in resuming a full scope of operations during the pandemic, Moody’s said.

S&P rates SkillSoft DIP loan BBB-

S&P said it rated SkillSoft Corp.’s $60 million debtor-in-possession delayed draw term loan BBB-. SkillSoft filed for a pre-negotiated bankruptcy under Chapter 11 on June 14.

“Our BBB- issue-level rating primarily reflects our view of the credit risk borne by the DIP term loan lenders and is not indicative of any ratings that we may assign to exit facilities or the reorganized firm after bankruptcy. We expect the DIP term loan will be converted to an exit term loan at emergence,” S&P said in a press release.

S&P slices Bioplan USA

S&P said it downgraded Bioplan USA Inc. to CCC from CCC+ and the first-lien debt rating to CCC from B-. S&P lowered the recovery rating to 3 from 2. Also, the agency cut the second-lien debt rating to CCC- from CCC. The recovery rating remains 5.

“The downgrade reflects Bioplan’s continued weak operating performance due to secular pressures within its client base and the added impact of Covid-19 retailer closures. We expect the company to face elevated liquidity and refinancing risks over the next 12-15 months when its first-lien term loan comes due in September 2021,” S&P said in a press release.

S&P said it forecasts continued weakening in revenue driven by factors largely outside the company’s control, including the secular pressures affecting the retail and print industries.

The outlook is negative.

S&P pares PureGym

S&P said it downgraded Pinnacle Bidco plc (PureGym) to CCC+ from B-, the rating on its £95 million super senior revolving credit facility to B from B+ and the rating on the £430 million of bonds, due 2025 to CCC+ from B-.

The recovery ratings remain 1 and 4, respectively. At the same time, S&P removed all of the ratings on the company from CreditWatch, where it placed them with negative implications on April 8.

“The downgrade reflects the uncertain macroeconomic environment that PureGym faces over the next 12 months, and the risk that a prolonged downturn could leave it burdened with an unsustainable capital structure,” S&P said in a press release.

The effects of the pandemic along with the £380 million debt-financed acquisition of Fitness World completed in January will spike the group’s leverage to 18x in 2020 and cause it to remain above 8x in 2021, compared with 6.5x in 2019, S&P said.

“The data from reopened sites in Denmark and Switzerland indicate that more than 90% of closing members have retained their membership. However, the U.K. sites – which represent about 60% of PureGym’s revenue – have not opened yet, and the trends from these sites will provide a better sense of the group’s free operating cash flow (FOCF) generation into the second half of 2020 and beginning of 2021,” S&P said.

The outlook is developing.

Moody’s slices Tahoe ratings

Moody’s Investors Service said it downgraded the corporate family rating of Tahoe Group Co., Ltd. to Caa3 from Caa1.

At the same time, Moody’s downgraded to Ca from Caa2 the backed senior unsecured rating on the notes issued by Tahoe Group Global (Co.,) Ltd. and guaranteed by Tahoe.

Tahoe missed payments on its domestic medium-term notes worth RMB 1.6 billion that were due on Monday.

“The missed payments will likely result in financial losses for its noteholders, and could also trigger payment acceleration of its U.S. dollar bonds if the company fails to rectify the missed payments within the grace period,” Moody’s said in a press release.

The outlook remains negative.

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