S&P puts Comet Bidco on positive watch

S&P said it placed its CCC+ ratings on Comet Bidco Ltd., the parent of Clarion Events, on CreditWatch with positive implications.

Comet launched a proposal to amend and extend the maturities on its revolving credit facility and term loan facilities to 2027. “If completed, the proposed transaction would alleviate refinancing risks and contribute to Clarion's cash-pay debt deleveraging thanks to the addition of a group of businesses to the restricted group and a reduction in senior secured debt through the redesignation of Blackstone's term loans into a subordinated payment-in-kind (PIK)-only facility,” the agency said in a press release.

“We believe that the proposed amendment offers adequate compensation to senior secured lenders, and therefore do not treat the transaction as tantamount to default,” S&P said.

Additionally, S&P said it sees Comet reporting revenue and EBITDA beating pre-pandemic levels in fiscal year ending Jan. 30, 2024, leading to substantially lower S&P Global Ratings-adjusted debt to EBITDA and free operating cash flow turning positive.

The agency noted that lenders representing 81% of senior secured debt support the proposal and that it could raise Comet’s ratings to B- based on a forecast for robust results and lower refinancing and liquidity risks.

© 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.