S&P shifts Casa view to developing

S&P said it placed its ratings for Casa Systems, Inc., including the CCC rating on its $300 million term loan due on Dec. 20, on CreditWatch with developing implications.

On May 9, Casa reported a transaction support agreement with lenders holding about 60% of the $223 million principal on Casa's term loan B. The agreement involves exchanging the debt for a newly issued super-priority term loan B, providing improved collateral, higher interest rates, improved covenant protections and penny warrants representing up to 19.99% of Casa's fully diluted outstanding shares.

“The CreditWatch developing placement considers uncertainties surrounding Casa's proposed plans to refinance its upcoming December 2023 term loan maturity, including whether the transaction will receive sufficient support from current lenders if it will satisfy all preconditions to close the transaction, as well as its plans if any to compensate nonconsenting lenders. Depending on the resolution of the above conditions, we could affirm, raise or lower the ratings on Casa over the next 90 days,” S&P said in a press release.

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