S&P cuts Save-A-Lot

S&P said it downgraded Save-A-Lot’s (Moran Foods LLC) issuer rating to SD from CCC+, its super senior, first-lien and second-lien term loans to D from B, CCC+ and CCC-, respectively.

“The downgrade follows term amendments that consisted of a maturity extension of the company's credit facilities to 2026, change in yield, and migration of debtholders between the first- and the second-lien term loan. We expect the transaction to be neutral in terms of leverage because the outstanding debt is about the same, but the average interest rate will be lower. In addition, Moran Foods will have a pay-in-kind interest payments option on its second-lien term loan for the first two years to alleviate potential liquidity pressures,” S&P said in a press release.

The agency said it plans to reevaluate Moran’s capital structure and its recent strategic initiatives over the next few days and expects to raise the issuer credit rating to the CCC category.

© 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.