S&P lowers Selecta Group

S&P said it lowered its ratings on Selecta Group BV to CC from CCC-, the super senior revolver and senior secured notes to CCC and CC, respectively. The recovery ratings remain unchanged, with meaningful recovery prospects on the senior secured notes (rounded estimate: 50%) and very high prospects on the super senior RCF (rounded estimate: 95%).

Selecta plans to recapitalize with an alleviation in cash interest and extension of current debt maturities to 2026 and asked its lenders to enter into a lock-up agreement. “We view the proposed transaction as a distressed exchange, with investors receiving less value than the promise of the original securities, which is tantamount to a default under our criteria,” S&P said in a press release.

Selecta’s ratings remain on CreditWatch with negative implications.

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