S&P upgrades Conuma Resources

S&P said it upgraded Conuma Resources Ltd.’s issuer rating to CCC+ from CCC and finalized the CCC+ issue-level and 3 recovery ratings on its 13 1/8% senior unsecured notes due 2028.

In an April 13 press release, the agency said if Conuma completed the sale of the notes it would upgrade the issuer rating to CCC+.

“We expect the company will use proceeds from the debt issuance primarily to repay the balance outstanding on its $158 million senior secured notes that were scheduled to mature in May 2023 and its large employer emergency financing facility (Leeff) (about $57 million). We also expect Conuma will upsize its revolving credit facility to $27.5 million from $22.5 million and extend the maturity to 2027,” S&P said in a press release.

S&P noted the refinancing will extend Conuma’s debt maturities to 2028, which lessens the near-term probability of a distressed debt exchange or a liquidity crisis.

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