S&P turns TMX outlook to negative

S&P said it revised its outlook for TMX Finance LLC to negative from stable and affirmed the B- ratings on the issuer and its 11 1/8% senior secured notes due in April. The recovery rating on the notes is 3 (55%), indicating meaningful recovery in default.

“The current unfavorable debt market conditions coupled with macroeconomic headwinds have created tougher financing conditions for companies looking to refinance or issue debt, which has led to a substantial decline in issuance volume. The outlook revision is based on the increased refinancing risk related to TMX's $333 million of 11 1/8% senior secured notes due April 1, 2023,” S&P said in a press release.

TMX also has a revolving credit facility, with $50 million outstanding as of June 30, which converted to a 12-month term loan in December and matures on Dec. 26.

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