S&P assigns Opal notes B-, CCC

S&P said it assigned B- debt ratings to Opal Acquisition Inc.'s (One Call Care Management) new 2024 senior secured first-lien notes with a 3 recovery rating, indicating an expectation for a meaningful (55%) recovery of principal in the event of a payment default.

In addition, the agency assigned a CCC debt rating to the new 2024 senior secured second-lien notes with a 6 recovery rating, indicating an expectation for negligible (0%) recovery in the event of a payment default.

The debt ratings on Opal’s other debt issues, including its 2018 senior secured first-lien revolver, 2020 senior secured first-lien term loan and remaining 2021 senior unsecured notes, are unaffected.

Opal’s early tender debt exchange offer concluded on July 10. Based on interim results provided by the company, it will be exchanging 97.8% of its outstanding 2021 senior unsecured notes at par for a mix of newly issued 2024 senior secured first- and second-lien notes. The debt exchange offer remains open until July 24, 2017 (though with lower consideration terms than the early tender offer).

S&P said it views the debt exchange as opportunistic rather than distressed, because it does not expect a conventional default (absent the transaction) in the next 12 to 24 months.

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