S&P cuts Pretium Packaging to SD, loan to D

S&P said it lowered the issuer credit rating on Poseidon Investment Intermediate LP (d/b/a Pretium Packaging LLC) to SD (selective default) from CCC+ and first-lien term loan rating to D (default) from CCC+.

Poseidon has announced an agreement with the majority of its first-lien lenders to exchange existing first-lien debt and new debt financing, ultimately reducing net debt.

“We consider this proposed debt restructuring transaction to be a selective default because we believe current first-lien debt holders who agree to the transaction are receiving less than originally promised,” S&P said in a news release.

“We expect to review our issuer credit rating on the company upon the close of the exchange transaction and rate the company under its new capital structure.”

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