PE Debt Watch (Upgrades and Downgrades)
As usual, we have a week’s worth of ratings actions on the debt of LBO-backed companies from ratings agencies Standard & Poor’s Ratings Services and Moody’s Investors Service. Company: Penton Business Media Holdings, Inc. Sponsor: MidOcean Partners and Wasserstein Ventures Action: Moody’s and S&P downgraded the company’s ratings to D in tandem with its Chapter 11 bankruptcy filing. Highlight: From Moody’s: “Penton has received acceptance of its prepackaged Plan of Reorganization by the requisite number of first and second lien lenders. In accordance with the terms of the Plan, the restructuring would result in the elimination of $270 million of debt (all of the second lien facility).” From S&P: “The weak operating performance raised leverage, weakened interest coverage, and reduced liquidity. We believe these factors contributed to the company's decision to file for bankruptcy protection.”
