ALM Media: Downgraded

On October 9, ALM Media was downgraded by S&P Global Ratings to CCC, from CCC+, on increased refinancing risk associated with upcoming debt maturities in July 2020 and 2021. The issuer’s most current maturity, its B term loan due July 2020 (L+450, 1% LIBOR floor) was downgraded to CCC+, from B–.  The downgrade reflects the increased potential for a liquidity event if there are delays in the refinancing of its debt. The first-lien term loan was quoted around a 94.25 bid today.

There is only one BDC with $22.7mn of exposure, but in both a first lien and second lien loan. That’s non-listed Cion Investment, whose $10mn in second lien debt was already discounted (35%) and remains there when we checked Advantage Data’s real-time market price records today. This company has been on the under-performing list since IIIQ 2017 and does not seem to be likely to return to performing status any time soon. We have a CCR 3 (Watch List) rating.