S&P slices Vue International

S&P said it downgraded its ratings for Vue International Bidco plc and its £65 million revolving credit facility and €634 million senior term loan to CC from CCC+.

Vue reported an agreement with a group of lenders representing about 60% of the first-lien debt to restructure its capital structure, which led to the downgrade, the agency noted.

“In our view, the transaction is distressed under our criteria because Vue's current capital is unsustainable and, absent the proposed transaction, the group would have faced covenant breaches in the fourth quarter of fiscal year ending Nov. 30, 2022. The transaction will result in first- and second-lien investors receiving less than the original promise in the initial loan contracts. In addition, first-lien investors will see their ranking altered with the new £550 million term loan being contractually subordinated to the proposed £81 million super senior new money facility,” S&P said in a press release.

The outlook is negative.

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