Healogics Hammered by Distressed Exchange

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On November 6, 2020, S&P Global Ratings lowered its issuer credit rating on CDRH Parent Inc., d/b/a Healogics, Inc., to SD from CCC- and its second-lien term loan due in 2022 rating to D from C. The downgrade reflects the distressed nature of the recently completed credit agreement amendment, according to the ratings agency. In addition to relief against very tight financial covenants, second-lien term loan lenders agreed to exchange annual cash interest payments for cash interest payments plus PIK for three periods (from the third quarter of 2020 to the first quarter of 2021). S&P Global views the transaction as Distressed.

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