S&P lowers Dex Media debt

Standard & Poor's said it lowered to CC the ratings on the debt issued by Dex Media Inc.’s subsidiaries, including R.H. Donnelley Inc., Dex Media East Inc., Dex Media West Inc. and SuperMedia Inc.

The recovery ratings are unchanged.

The agency also said it removed the ratings from CreditWatch, where they were placed with negative implications in October 2015.

The downgrades follow news that Dex Media entered into a restructuring support agreement with lenders holding 66% of its senior secured credit facilities and more than 65% of its senior subordinated notes, S&P said.

The company intends to file a voluntary petition under Ch. 11 of the U.S. bankruptcy code in the third quarter of 2016 once it receives sufficient votes to confirm the plan, the agency said.

Under the terms of the agreement, Dex Media’s senior secured lenders will exchange about $2.12 billion term loans for a new $600 million new first-lien term loan, balance sheet cash and nearly all of the post-reorganized equity, S&P said.

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