S&P lifts Casa, rates loan B-

S&P said it raised its rating for Casa Systems Inc. to CCC+ from CCC- and assigned a B- issue-level rating to its super-priority term loan. The agency also downgraded the issue-level rating on the stub portion of the existing TLB to CCC-.

On June 15, Casa reported completing its transaction support agreement. There was strong support for the TSA, with 98% participation from lenders, translating to a dollar-for-dollar rollover of participating lenders’ commitments into a new super-priority $220 million dollar term loan B, which matures in December 2027. The company used $40 million of the new super-priority loan to pay down its 2027 term loan B at par.

“As part of the TSA, consenting lenders will receive better collateral coverage, higher interest rates, stronger covenant protections, and penny warrants representing up to 19.99% of Casa's fully diluted outstanding shares. Furthermore, participating lenders gain the right to appoint an observer to Casa's board of directors. The remaining 2% of the nonparticipating lender's commitments on the company's existing TLB (approximately $5 million) will be repaid at its original maturity date in December 2023,” S&P said in a press release.

The outlook is stable.

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