S&P rates Pugnacious Endeavors loan B-

S&P said it assigned its B- issue-level rating and 3 recovery rating to Pugnacious Endeavors Inc.'s $330 million incremental senior secured term loan. The 3 recovery rating indicates an expectation for meaningful recovery (50%-70%; rounded estimate: 50%) of principal in the event of a payment default.

Pugnacious issued the incremental term loan, which is pari passu – but not fungible – with its existing senior secured credit facility, through its borrower subsidiary PUG LLC.

“Our B- issuer credit rating and negative outlook on Pugnacious remain unchanged. While the incremental debt marginally increases the company's debt burden and cash interest costs due to its high interest rate (Libor plus 8%), we believe the additional liquidity will support its ability to service its cash needs during this period of almost no revenue,” S&P said in a news release.

“Our rating and outlook continue to reflect the substantial risk that the disruption to live events could persist and the company could face additional operational challenges such that it is unable to adequately manage its cost structure, cash flow, and liquidity, ultimately leading to an unsustainable capital structure.”

© 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.