Moody’s adds LD to Equinox rating

Moody's Investors Service said it appended a limited default designation to Equinox Holdings Inc.'s Ca-PD probability of default rating changing it to Ca-PD/LD. The /LD designation reflects a limited default in Equinox's capital structure concerning the recent amendment to extend the maturity of its $76 million revolver ($66 million outstanding currently) to Jan. 8, 2024, from Wednesday.

“Moody's views the amendment to extend the maturity as a distressed exchange default (DE) because Equinox's inability to fund the maturity through existing liquidity necessitated the extension as well as the company's negative free cash flow, high leverage, and weak liquidity with looming maturities,” the agency said in a press release.

The PDR will revert to Ca-PD and the /LD designation will be removed in about three business days.

The outlook is negative.

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