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<p>[QUOTE="Time To Go, post: 4054473"]How secure is your job?</p><p><br /></p><p><br /></p><p>Published: Aug 12, 2011 12:56 PM</p><p><br /></p><p> MediMedia downgraded to CCC+ over covenant violation concerns </p><p><br /></p><p>Standard & Poor’s yesterday downgraded MediMedia’s corporate issuer and debt ratings on expectations that the company was in violation of its financial covenants for the second quarter and because the company is seeking covenant relief.</p><p> </p><p>The corporate issuer rating was downgraded to CCC+, from B, while the $200 million senior secured term loan due 2013 and $50 million senior secured revolving credit due 2012 were downgraded to B, from BB-. MediMedia’s $150 million issue of 11.375% senior subordinated notes due 2014 was cut to CCC-, from CCC+. All of the ratings also were placed on CreditWatch with developing implications.</p><p> </p><p>The term loan was quoted at 91.5/93.5 on Wednesday, sources said. The notes were pegged around 88, versus 96 before the sell-off this week, according to Capital IQ. The 144A-for-life paper was sold at par in late 2006 with CCC+/Caa1 ratings.</p><p> </p><p>According to S&P, MediMedia is negotiating with lenders to loosen financial covenants. “We believe that MediMedia has the capacity, albeit limited, to absorb likely costs of an amendment,” S&P wrote in the Aug. 11 report.</p><p> </p><p>MediMedia’s second-quarter operating performance was weaker than expected due to disruptions in its pharmaceutical marketing business. S&P expects the company to continue to generate negative discretionary cash flow into 2012 as a result of declining EBITDA. However, liquidity could be boosted by the sales of one of MediMedia’s businesses. But barring any significant debt repayment, S&P says MediMedia’s credit protection measures will weaken materially from its previous expectations, which included adjusted EBITDA coverage of interest in the high-1x area and leverage in the mid-7x area by the end of the year. As of March 31, MediMedia’s adjusted debt-to-EBITDA ratio was 7.1x.</p><p> </p><p>Goldman Sachs and Credit Suisse in 2006 arranged the $250 million loan package supporting Vestar Capital Partners’ acquisition of MediaMedia. The term loan initially priced at L+250, but was revised to L+225 in 2007. The facility was rated B+/Ba3.[/QUOTE]</p><p><br /></p>
[QUOTE="Time To Go, post: 4054473"]How secure is your job? Published: Aug 12, 2011 12:56 PM MediMedia downgraded to CCC+ over covenant violation concerns Standard & Poor’s yesterday downgraded MediMedia’s corporate issuer and debt ratings on expectations that the company was in violation of its financial covenants for the second quarter and because the company is seeking covenant relief. The corporate issuer rating was downgraded to CCC+, from B, while the $200 million senior secured term loan due 2013 and $50 million senior secured revolving credit due 2012 were downgraded to B, from BB-. MediMedia’s $150 million issue of 11.375% senior subordinated notes due 2014 was cut to CCC-, from CCC+. All of the ratings also were placed on CreditWatch with developing implications. The term loan was quoted at 91.5/93.5 on Wednesday, sources said. The notes were pegged around 88, versus 96 before the sell-off this week, according to Capital IQ. The 144A-for-life paper was sold at par in late 2006 with CCC+/Caa1 ratings. According to S&P, MediMedia is negotiating with lenders to loosen financial covenants. “We believe that MediMedia has the capacity, albeit limited, to absorb likely costs of an amendment,” S&P wrote in the Aug. 11 report. MediMedia’s second-quarter operating performance was weaker than expected due to disruptions in its pharmaceutical marketing business. S&P expects the company to continue to generate negative discretionary cash flow into 2012 as a result of declining EBITDA. However, liquidity could be boosted by the sales of one of MediMedia’s businesses. But barring any significant debt repayment, S&P says MediMedia’s credit protection measures will weaken materially from its previous expectations, which included adjusted EBITDA coverage of interest in the high-1x area and leverage in the mid-7x area by the end of the year. As of March 31, MediMedia’s adjusted debt-to-EBITDA ratio was 7.1x. Goldman Sachs and Credit Suisse in 2006 arranged the $250 million loan package supporting Vestar Capital Partners’ acquisition of MediaMedia. The term loan initially priced at L+250, but was revised to L+225 in 2007. The facility was rated B+/Ba3.[/QUOTE]
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Cafepharma Message Boards | Pharma Sales, Device Sales, Lab Sales
Home
Forums
>
Pharma Industry Support Services
>
MediMedia
>
Layoffs?
>
Cafepharma Message Boards | Pharma Sales, Device Sales, Lab Sales
Home
Forums
>
Pharma Industry Support Services
>
MediMedia
>
Layoffs?
>