S&P lowers MHP

S&P said it lowered MHP SE’s issuer rating to SD from B- and its senior unsecured notes to D from B-.

MHP missed the coupon payment on its $350 million of 6¼% notes that was due on March 19. On Monday, the company reported its consent solicitation to bondholders of its three senior unsecured notes outstanding to implement a 270-day extension to the grace period under all indentures. The extension would allow the company flexibility to postpone its first interest payments in 2022.

“The rating action reflects MHP's announcement that it missed the coupon payment due under its $350 million senior unsecured 6.25% fixed-rate notes on March 19, 2022, and is seeking consent solicitation from all bondholders to postpone the payment. According to the terms of the bond indenture, the company has 30 days from the due date of March 19, 2022, to pay the overdue coupon before an event of default is triggered. The company stated publicly that it is unlikely to make the coupon payment on all outstanding notes in a timely manner,” S&P said in a press release.

The agency said it plans to review MHP’s ratings after the process is completed, and evaluate in a satisfactory manner the company's business and financial prospects under the amended debt terms.

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