E-mail us: service@prospectnews.com Or call: 212 374 2800
Bank Loans - CLOs - Convertibles - Distressed Debt - Emerging Markets
Green Finance - High Yield - Investment Grade - Liability Management
Preferreds - Private Placements - Structured Products
 
Published on 2/8/2017 in the Prospect News Bank Loan Daily.

S&P cuts TGI Friday's, facilities

S&P said it lowered its corporate credit rating on the TGI Friday's Inc. from B+ to B.

The rating outlook is stable.

The company's existing credit facility, which includes a cash revolver and term loan facility, are currently rated BB- with a 2 recovery rating, indicating an expectation for recovery toward the lower end of the substantial range (70%-90%) in the event of payment default.

Upon review of the final documentation and completion of the securitization transaction, including existing debt repayment, the agency said it expects to withdraw the corporate-credit and issue-level ratings.

"The ratings downgrade reflects our expectation for increased leverage following the proposed sale of $420 million in structured notes," S&P credit analyst Mathew Christy said in a news release.

"We expect the company to generate relatively stable revenue, EBITDA, and cash flow in the coming year because of its highly franchised operating model. However, we also project leverage to increase to about 5.7x in 2017 and then remain in the mid- to-high 5x range. This compares to the 4.8x through the twelve months ended September 2016."


© 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.