S&P raises TKC loan

S&P said it raised the issue-level rating on TKC Holdings Inc.'s first-lien term loan to B from B- and revised the recovery rating to 2 from 3. The 2 recovery rating indicates an expectation of substantial (70%-90%; rounded estimate: 75%) recovery in default. The CCC issue-level and 6 recovery ratings (rounded estimate: 0%) on TKC's senior unsecured notes are unchanged.

“This rating action follows a revision to TKC's capital structure as part of its proposed refinancing. The revised capital structure includes $925 million outstanding on the first-lien term loan compared to $1.125 billion initially and $700 million outstanding on its senior unsecured notes compared to $500 million initially. The lower level of first-lien debt improves recovery expectations for those lenders,” the agency said in a press release.

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