S&P downgrades Checkout, Catalina Marketing

S&P said it downgraded the issuer credit ratings on Checkout Holding Corp. and its subsidiary Catalina Marketing Corp. to CC from CCC.

The agency also said it downgraded the group's first-lien term loan and revolver facilities to CC from CCC and the second-lien term loan to C from CC.

The recovery ratings on these issuances are unchanged.

The ratings were also placed on CreditWatch with negative implications.

The downgrades further reflect an expectation that the company will need to pursue a debt restructuring on its $1.15 billion first-lien term loan and revolving credit facilities due in 2021 and 2019 and its $460 million second-lien term loan due in 2022.

The CreditWatch placement also reflects expectations that Checkout Holdings will need to restructure its existing debt, which includes its first- and second-lien term loans, S&P explained.

The resolution of the CreditWatch placement will depend on clarity regarding Checkout's ability to meet its Nov. 30 interest payment, as well as its plans to satisfy future debt maturities.

© 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.