S&P slices CareerBuilder

S&P said it cut CareerBuilder LLC’s issuer rating to CCC from B- and its senior secured debt to CCC+ from B+. The recovery rating on this debt remains 2. The outlook is negative.

“The downgrade and negative outlook reflect the increased risk that the company will be unable to refinance its first-lien term loan prior to its maturity,” the agency said in a press release.

The first-lien term loan matures on July 31, 2023, $175.6 million was outstanding as of March 31) and will likely become current. The $50 million revolving credit facility, undrawn as of March 31, matures on July 31.

“We expect CareerBuilder will increasingly depend on cash from the balance sheet ($63 million as of March 31, 2022) to finance operations. Regardless of the company's existing liquidity position, we estimate that internal sources will be insufficient to service debt repayment and other expected uses in full over the next 12 months without the company completing a refinancing, meaningful maturity extension, or executing on a strategic alternative such as potential asset sales,” S&P said.

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