S&P dips Dawn Acquisitions

S&P said its ratings on Dawn Acquisitions LLC to SD, selective default, from CCC and its first-lien debt to D from B-.

Through a related party, Dawn bought back “a significant amount of its $500 million” term loan at under-par prices, S&P said.

“We consider these transactions as tantamount to default because the lenders are receiving less than they were originally promised. In addition, we view the transactions as distressed given Dawn's current leverage and liquidity position. In our view, the company's capital structure is unsustainable because we project its S&P Global Ratings-adjusted debt to EBITDA will remain above 10x through 2022 and believe it could exhaust its liquidity in the next 12 months absent an external cash infusion,” the agency said in a press release.

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