S&P drops Global Eagle to D

S&P said it dropped Global Eagle Entertainment Inc.’s issuer rating to D from CCC- and also lowered the ratings on the company’s debt to D.

“The downgrade follows Global Eagle’s announcement that it has entered into a definitive ‘stalking horse’ asset purchase agreement for total consideration of $675 million by an entity established at the direction of holders of about 90% of the company's senior secured first-lien term loans,” S&P said in a press release.

Global Eagle also voluntarily filed for protection under Chapter 11. The company is securing an $80 million debtor-in-possession financing from the investor group.

“If the prepackaged plan is approved and the stocking horse bid is accepted, Global Eagle will emerge with about $400 million of debt,” S&P said.

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