S&P slashes Resolute Investment Managers

S&P said it lowered its ratings on Resolute Investment Managers Inc. and its first-lien secured debt to CC from B- and its second-lien secured debt to C from CCC.

On Monday, the issuer reported a partial debt-for-equity exchange and restructuring of its $538 million first-lien term loan due April 2024 and a full debt-for-equity exchange of its $89 million second-lien term loan due April 2025.

“We view the debt-for-equity transaction as distressed and tantamount to default. Lenders of both the first and second-lien term loans will receive less than the promise of the original securities due to the reduced principal balance and extended maturity of the new first-lien term loan, as well as the junior ranking of the equity being offered,” S&P said in a press release.

The outlook is negative.

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