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S&P: Day International Group on developing watch
Standard & Poor's said it placed its B corporate credit rating on Day International Group Inc. on CreditWatch with developing implications.
The CreditWatch listing follows the announcement by Day that it is in discussions regarding a potential sale of the company to Flint Group (unrated), the agency said, noting that although a purchase agreement has not been reached yet and ultimate completion and timing of such a transaction remain uncertain at this stage, S&P said it believes that Day's management is contemplating certain strategic developments that could affect the company's credit rating.
The B bank loan rating and 2 recovery rating on Day's first-lien revolving and term loan facilities, as well as the CCC+ bank loan rating and 5 recovery rating on Day's second-lien term loan facility, were affirmed and not placed on CreditWatch, as S&P said it expects that, should an acquisition of Day occur, the bank facility would be replaced at closing given change of control language in the bank facilities.
The CCC rating on the company's senior exchangeable preferred stock was also affirmed, as the company may at its option redeem the preferred stock for cash and this instrument would likely be redeemed upon a change of control, the agency added.
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