Bioplan USA Inc. Downgraded To 'CCC+' On Sustained Cash Flow Weakness; Outlook Negative

New York City-based beauty and personal care sampling and packaging provider Bioplan USA Inc. reported weaker-than-expected operating performance that resulted in negative free operating cash flow (FOCF) generation over the last 12 months. We expect FOCF to remain weak due to continued secular pressures affecting the print and retail industries, on which the company depends for the distribution of its key products. The company's $65 million revolving facility will mature in September 2019, and unless it extends the maturity or obtains a new revolving facility, we expect the replacement of the revolver with the factoring of accounts receivable for working capital purposes to constrain liquidity. We lowered our issuer credit rating on Bioplan to 'CCC+' from 'B-'. We also lowered

...June 4, 2019 - New York City-based beauty and personal care sampling and packaging provider Bioplan USA Inc. reported weaker-than-expected operating performance that resulted in negative free operating cash flow (FOCF) generation over the last 12 months. We expect FOCF to remain weak due to continued secular pressures affecting the print and retail industries, on which the company depends for the distribution of its key products. - The company's $65 million revolving facility will mature in September 2019, and unless it extends the maturity or obtains a new revolving facility, we expect the replacement of the revolver with the factoring of accounts receivable for working capital purposes to constrain liquidity. - We lowered our issuer credit rating on Bioplan to '###+' from 'B-'. - We also lowered our issue-level ratings on the first-lien debt to 'B-' from 'B'. The recovery rating remains '2'. In addition, we lowered our issue-level rating on the second-lien debt to '###' from '###+'. The...

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