S&P upgrades Comet Bidco

S&P said it raised its ratings on Comet Bidco Ltd., the parent of Clarion Events, and its senior secured debt to B- from CCC+. The agency also removed the ratings from CreditWatch, where they were placed with positive implications on June 2.

Comet recently completed an amend and extend transaction that stretched the maturities on its revolving credit facility and term loan facilities extended to 2027.

“In our view, the transaction has alleviated refinancing risks and contributed to Clarion's deleveraging thanks to the addition of a group of businesses to the restricted group and reduced senior secured debt through the redesignation of Blackstone's senior secured term loans into a subordinated shareholder loan provided on a payment-in-kind-only (PIK) basis, which we consider akin to equity.

“We still believe that, due to a robust recovery in trading activity in China, the group will likely report revenue and EBITDA above pre-pandemic levels in fiscal 2024 (year ending Jan. 30, 2024), leading to a significant reduction in S&P Global Ratings-adjusted debt to EBITDA and free operating cash flow (FOCF) turning positive,” S&P said in a press release.

The outlook is stable.

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