S&P drops Elara to SD

S&P said it downgraded the issuer rating for BW Homecare Holdings LLC (Elara Caring) to SD from CCC- and the first-lien term loan to D (default) from CCC-. The agency also affirmed C issue-level rating on the company's second-lien debt.

Elara completed a distressed exchange transaction with its first-lien and 1.5-lien term loan holders. Lenders received pro rata shares in new super-priority tranches of loans ranking junior to new $125 million first-out debt, with about $125 million of interest on term loans deferred as payment-in-kind and an extension of maturity dates.

S&P said it considers the exchange the equivalent of default.

“We intend to reassess our issuer and issue-level ratings on Elara Caring in the near term to reflect the changes to the capital structure as a result of this transaction,” the agency said in a press release.

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