S&P lowers Rising Tide

S&P said it lowered its ratings for Rising Tide Holdings Inc. (West Marine Inc.) and its first-lien term loan facility to CC from CCC and its second-lien term loan facility to C from CC.

Rising Tide is offering to exchange its first- and second-lien term loan facilities for new facilities, which S&P said it considers equivalent to a default. The offer also includes facilities lent to Rising Tide by its owner L Catterton.

However, the agency noted that 72% of first-lien term loan lenders and 89% of second-lien lenders have recently agreed to participate.

S&P said it expects to downgrade Rising Tide to SD, or selective default and the loans to D.

The outlook is negative.

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