S&P slices TMK Hawk Parent

S&P said it lowered its ratings for TMK Hawk Parent Corp. to SD, selective default, from CC, its tranche B term loan to D from CC and the rating on its second-lien term loan to D from C. The rating on its tranche A term loan remains CCC because it was redeemed at par.

“The downgrade follows TMK's announcement of a comprehensive capital restructuring,” S&P said in a statement.

The deal raised about $350 million in new common equity from existing and new investors that was used to partially repay the company's debt obligations. TMK will use the cash to redeem the balance of the tranche A first-out term loan and to lower borrowings under the asset-based lending facility. Additionally, as part of the transaction, the tranche B second-out term loan was exchanged for new debt, a combination of new debt and equity, or equity at a value substantially below the original principal amount, the agency said.

“In the following week, we will upgrade our issuer credit rating, depending on a review of the final level of leverage and the maturity profile of the remaining debt, and our expected view of the company's performance. We will also assign ratings to the company's new debt and withdraw our ratings on the debt the company has restructured,” 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.