Moody’s changes PaperWorks to Ca-PD/LD

Moody's Investors Service said it appended a limited default (LD) designation to PaperWorks Industries, Inc.'s probability of default rating, changing the rating to Ca-PD/LD from Ca-PD.

All other ratings are unchanged, including the Ca rating on the senior secured notes due 2019 and the Ca corporate family rating.

The outlook remains stable.

Moody’s said the change in the probability of default rating follows the company's announcement that it exchanged its 9˝% senior secured notes due 2019 for new debt and new common equity in the reorganized company.

The unrated revolver was repaid in full.

The company's new capital structure consists of a $114 million term-loan due in February 2023, inclusive of $70 million of new capital.

“Moody's considers the transaction a distressed exchange, which is an event of default under Moody's default definition. As noted above, Moody's appended the Ca-PD PDR with an "/LD" designation, indicating a limited default, which we will be removed after one business day. Since the company no longer has any rated debt, all its ratings will be withdrawn,” the agency said in a news release.

© 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.