S&P cuts Garland Holdings

S&P said it lowered the ratings on GK Holdings Inc. and its secured first-lien debt to CCC- from CCC. The agency also lowered the issue-level rating on the senior secured second-lien term loan to CC from CCC-. The recovery ratings on the debt facilities are unchanged.

Garland does business as Global Knowledge.

“The downgrade reflects our view of Global Knowledge's heightened liquidity risks. We expect the company to generate negative free operating cash flow this year and believe there is an increased likelihood that it will struggle to meet its near-term financial obligations, including the next quarterly interest payment of about $5 million due in December 2019 and the quarterly term loan amortization payments of $438,000,” said S&P in a press release.

The outlook is negative.

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