S&P cuts Cologix view to negative, lowers loan to B-

S&P said it affirmed the B- issuer credit rating on Cologix Holdings Inc. and revised the outlook to negative from stable.

At the same time, S&P said it lowered its issue-level rating on the company's existing senior secured first-lien credit facilities to B- from B and revised the recovery rating on this debt to 3 from 2, reflecting an expectation of meaningful (50%-70%; rounded estimate: 50%) recovery in the event of a payment default.

Cologix has raised $270 million in debt to refinance its existing second-lien term loan, repay revolver borrowings and add cash to the balance sheet to fund future expansionary capital spending.

“The negative rating outlook reflects our expectation for higher leverage in 2019 as a result of the transaction, which modestly increases risk if revenue from recent capacity builds does not materialize in late 2019 and the first half of 2020,” S&P said in a news release.

© 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.