Neovia Logistics LP Ratings Lowered To #SD# From #CC# On PIK Exchange Ratings Removed From CreditWatch Negative

Stocks and Financial Services Press Releases Tuesday March 21, 2017 09:18
NEW YORK--21 Mar--S&P Global Ratings

NEW YORK (S&P Global Ratings) March 20, 2017--S&P Global Ratings said today that it lowered its corporate credit rating on U.S.-based logistics provider Neovia Logistics LP and Neovia Logistics Intermediate Holdings LP to 'SD' from 'CC' and removed all ratings from CreditWatch, where they were placed with negative implications on Jan. 11, 2017.

At the same time, we lowered our issue-level rating on the senior unsecured PIK toggle notes issued by Neovia's subsidiaries to 'D' from 'C'. The '6' recovery rating is unchanged, indicating our expectation for negligible recovery (0%-10%; rounded estimate: 0%) in the event of a payment default.

Additionally, we affirmed our issue-level rating of 'CC' on the $465 million senior secured notes maturing in 2020 issued by the company's subsidiaries. The '4' recovery rating is unchanged, indicating our expectation for average (30%-50%; rounded estimate: 35%) recovery in the event of a payment default. Our rating on the senior secured notes reflects our expectation that the company will continue to meet its obligations on the senior secured notes.

The downgrade follows Neovia's completion of an exchange plan for its senior unsecured PIK toggle notes due in 2018. Under the terms of the offer, the company will exchange $620.40 in principal amount of new exchange notes and $379.60 in cash from capital contributed by its owners for each $1,000 par bond retired. The maturity on the new exchanged senior PIK notes will be in 2020 and subject to an interest rate step-up on April 1, 2018. The notes will also be subject to an interest rate step-down that is dependent on the total net leverage ratio of the company. Neovia has also received covenant relief on its revolving credit facility as part of this transaction.

We view the proposed transaction as a distressed exchange under our criteria due to the fact that it is probable the company would default on the existing securities over the near term if the exchange did not occur, the exchange pushes out the maturity on the new notes, and we believe that the value of the exchange consideration is less than promised full payment.


Latest Press Release

mai welcomes real estate developer CMC on November 19

Market for Alternative Investment (mai) will list Chaoprayamahanakorn pcl, a leading real estate developer onNovember 19, under the ticker symbol "CMC". The company has a market capitalization at its initial public offering (IPO) of THB 3.00 billion...

KTC - Chilito Mexican Grill - Farm Factory provide members special privileges for payments made using QR Pay in the KTC Mobile app.

Mrs. Pranaya Nithananon, Vice President - Credit Card Business, "KTC" or Krungthai Card Public Company Limited, provides KTC VISA and KTC MasterCard credit card members who make payments through KTC QR Pay in the "KTC Mobile" app worth Bt. 300 or more...

Photo Release: KBank opens new flagship branch and THE WISDOM Lounge at ICONSIAM

Mr. Wirawat Panthawangkul (3rd from left), KBank Senior Executive Vice President, and Ms. Chadatip Chutrakul (4th from left), Director of ICONSIAM Co., Ltd., and Chief Executive Officer of Siam Piwat Co., Ltd., participated in the opening ceremony of...

Photo Release: CIMB Group Joins RippleNet to Power Instant Payments Across ASEAN

Tengku Dato' Sri Zafrul Aziz, Group CEO of CIMB Group (right), and Brad Garlinghouse, Ripple CEO (left) commemorating the strategic collaboration between CIMB Group and Ripple to power instant payments across ASEAN at the Singapore FinTech festival 2018...

CIMB Group Joins RippleNet to Power Instant Payments Across ASEAN

CIMB is one of the first banks to leverage blockchain technology to tap into region's USD120 billion remittance business CIMB Group ("CIMB" or "the Group") and Ripple have entered into a strategic collaboration to enable instant cross border payments...

Related Topics