S&P raises Digital Media

S&P said it raised its issuer rating on Digital Media Solutions Inc. to CCC from SD, Selective Default, and issue-level ratings on its initial senior secured revolving credit facility and term loan to CC from D. At the same time, the agency revised the recovery ratings on these debt facilities to 6 from 4.

S&P also assigned B- issue-level and 1 recovery ratings to the company's $22 million senior secured tranche A term loan due 2026 and CCC- issue-level and 5 recovery ratings to its $66 million senior secured tranche B term loan due 2026.

“The CCC issuer credit rating reflects our expectation that DMS will likely undertake another distressed debt exchange over the next 12 months. We believe the company could enter into a distressed sale in the near term because, under the terms of the second amendment, it agreed to promptly commence a strategic review and marketing process for the sale of all or substantially all of its assets subject to certain milestones,” the agency said in a statement.

S&P noted that DMS' term loan is trading at levels with a midpoint price of about 12 cents on the dollar.

The outlook is negative.

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