Moody’s ups Emerald X default rating

Moody’s Investors Service said it upgraded Emerald X, Inc.’s probability of default rating to B2-PD reflecting a reduced likelihood of default following the company’s entry into an agreement with Onex to raise $400 million in convertible preferred stock which will bolster liquidity.

Moody’s also confirmed Emerald X’s corporate family rating at B2 and confirmed the ratings on the company’s $150 million revolving credit facility and $529.5 million term loan B at B2.

The speculative grade liquidity rating has been upgraded to SGL-1 from SGL-3, reflecting the improved liquidity and outlook changed to negative.

“The outlook was changed to negative from rating under review due to continued uncertainty surrounding the resumption of and longer-term impact on in-person trade shows,” Moody’s said in a press release.

This concludes the review for downgrade started on March 31, the agency said.

Moody’s assigns CNP Assurances notes A3

Moody’s Investors Service said it assigned an A3(hyb) rating to the €750 million tier 2 ordinary dated subordinated notes due 2051 to be issued by CNP Assurances.

“The A3(hyb) rating of the debt reflects (i) the ranking of the debt (subordinated), (ii) the mandatory coupon deferral mechanism (in case of breach of regulatory capital requirements) and the optional deferral mechanism, as well as (iii) the cumulative nature of deferred coupons, in case of deferral. The A3(hyb) rating is in line with Moody’s standard notching practices for this type of instruments issued by operating companies,” Moody’s said in a press release.

Moody’s assigns Meredith notes Ba3

Moody’s Investors Service said it assigned a Ba3 rating to new senior secured notes issued by Meredith Corp.

“The Ba3 rating on the new senior secured notes reflects their pari-passu priority and equivalent security interest with the company’s senior secured term loan, Moody’s said in a press release.

The company will use the proceeds together with a recently launched incremental term loan and cash from the balance sheet to redeem all of its outstanding series A preferred stock and pay fees and expenses incurred in connection with the financing and redemption transactions.

S&P gives Meredith notes BB-

S&P said it assigned its BB- rating and 1 recovery rating to Meredith Corp.’s proposed $300 million of senior secured notes due 2025. The 1 recovery rating indicates an expectation for very high (90%-100%; rounded estimate: 90%) recovery for lenders in the event of a default.

Meredith will use the proceeds, its previously announced $410 million term loan and cash from its balance sheet to redeem $650 million of preferred equity and cover its call premium, accrued dividends, and transaction-related expenses.

The company’s B rating and negative outlook are unaffected by the offering, S&P said.

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