S&P cuts Vue

S&P said it downgraded its ratings for Vue Entertainment International Ltd. to SD, selective default, from CC and its €649 million senior term loan B due December 2027 to D from CC. The agency, however, affirmed the CCC rating on Vue’s €95 million super-senior facility due June 2027.

Vue completed its restructuring on Feb. 20 after getting all its lenders to consent and the downgrade reflects the transaction.

The transaction includes a partial debt-for-equity swap on the €649 million senior term loan B due December 2027, and the reclassification of part of its outstanding balance into a 1.5 lien facility, also due December 2027. Vue also will issue a new £54 million euro-equivalent super senior money facility that will rank equally with the outstanding €95 million super senior facility, both due June 2027. The issuance will provide proceeds of about £50 million that the group will use for general corporate purposes and to support near-term liquidity needs.

S&P said it considers the deal equivalent to default because lenders are getting less than they were originally promised. The agency plans to reevaluate Vue’s ratings over the next few days.

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