CROSSMARK Holdings Inc. Downgraded To 'SD' From 'CC' Following Missed Principal And Interest Payments

  • U.S.-based CROSSMARK Holdings Inc. elected to miss the debt service payments on its first- and second-lien term loans that were due on March 29, 2019.
  • We believe that the company's decision to miss these payments was strategic given its efforts to renegotiate with its lenders under the Restructuring Support Agreement (RSA) executed on Dec. 31, 2018.
  • Therefore, we are lowering our issuer credit rating on CROSSMARK to 'SD' (selective default) from 'CC'.
  • At the same time, we are lowering our issue-level rating on the company's first-lien term loan to 'D' from 'CC' and our issue-level rating on its second-lien term loan to 'D' from 'C'.
  • We are also affirming our 'CC' issue-level rating on CROSSMARK's senior secured revolving credit facility.
CHICAGO (S&P Global Ratings) April 15, 2019—S&P Global Ratings today took the rating actions listed above. The downgrade follows CROSSMARK's missed principal and interest payments on its $425 million first-lien term loan due December 2019 and the missed interest payment on its $90 million (outstanding) second-lien term loan due December 2020. We affirmed our 'CC' issue-level rating on the company's revolving credit facility due June 2019 based on our understanding that CROSSMARK is still current on all of the obligations (including commitment and letter of credit fees) for this facility. We will reevaluate our ratings on the company when it undertakes a restructuring event, which we believe is imminent.
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