S&P might cut Russell Investments

S&P said it placed its BB issuer credit ratings on Russell Investments Cayman Midco Ltd. on CreditWatch with negative implications.

The agency also placed the BB issue rating on Russell's first-lien facility on CreditWatch negative. The recovery rating is 3, indicating meaningful (50%) recovery prospects.

“We placed the ratings on CreditWatch following the company's announcement that it intends to launch a $300 million add-on to its first-lien term loan to fund a special dividend to shareholders,” S&P said in a news release.

“This transaction would be the second debt-funded special dividend since the company's financial sponsors, TA Associates and Reverence Capital Partners, acquired the entity less than two years ago.”

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