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S&P downgrades Affinion
Standard & Poor's said it lowered its long-term corporate credit rating on Affinion Group Holdings Inc. to SD from CC.
At the same time, the agency lowered the issue-level ratings on Affinion 's outstanding 13¾%/14½% senior secured PIK/toggle notes due 2018 to D from CC.
The downgrade follows Affinion’s announcement that it completed the exchange of series A warrants and new warrants to purchase shares of its class B common stock, for its 13¾%/14½% senior secured PIK/toggle notes due 2018, which the company issued in December 2013.
S&P said it views the exchange as distressed and tantamount to a default, given that in its view Affinion’s investors will receive securities of less value than originally promised. Roughly $88.7 million in aggregate principal amount of the existing notes were tendered and accepted in the exchange offer.
As a result, there will remain outstanding about $204 million aggregate principal amount of the 13¾%/14½% senior secured PIK/toggle notes.
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