Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers A > Headlines for American Achievement Corp. > News item |
S&P may lift American Achievement
Standard & Poor's said it assigned American Achievement Corp.'s proposed senior secured second-lien notes due 2016 a preliminary issue-level rating of B and a preliminary recovery rating of 4, indicating expectation of 30% to 50% recovery.
The agency placed the B- corporate credit rating on CreditWatch with positive implications.
Proceeds will be used refinance the company's entire capital structure. The refinancing would relieve pressure from the company's current near-term and medium-term maturities, the agency noted.
"The positive CreditWatch listing reflects the improvement to the company's liquidity profile if the refinancing transaction is completed," S&P analyst Tulip Lim said in a statement.
The B- corporate credit rating reflects expectation that debt leverage will remain high and interest coverage will remain weak, the agency said. It also reflects American Achievement's significant maturities in 2012 if the refinancing is not completed.
As of May 31, American Achievement's leverage was 6.4x. Pro forma adjusted leverage, which includes the new preferred stock and is calculated using reported EBITDA, will remain high, at 6.7x, but in line with the ratio for the rating category, the agency said.
© 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.