Bulletin: Harland Clarke Holdings Corp. Ratings Unaffected By Proposed Debt Add-On And MaxPoint Acquisition

NEW YORK (S&P Global Ratings) Sept. 7, 2017--S&P Global Ratings today said that its ratings and outlook on Harland Clarke Holdings Corp. (HCHC; B+/Negative/--) are not affected by the company's planned debt-funded acquisition of U.S.-based digital media marketing technology company MaxPoint Interactive Inc. HCHC plans to finance the acquisition with a $100 million fungible add-on to its senior secured first-lien B-6 term loan due 2022. The transaction and the increased secured debt in the capital structure don't materially affect HCHC's adjusted leverage. We estimate the company's adjusted leverage will be at about 5.4x by December 2017 and in the low-5x to high-4x range by year-end 2018 on a pro forma basis. Our estimate includes our estimated cost synergies for the

...NEW YORK (S&P Global Ratings) Sept. 7, 2017--S&P Global Ratings today said that its ratings and outlook on Harland Clarke Holdings Corp. (HCHC; B+/Negative/--) are not affected by the company's planned debt-funded acquisition of U.S.-based digital media marketing technology company MaxPoint Interactive Inc. HCHC plans to finance the acquisition with a $100 million fungible add-on to its senior secured first-lien B-6 term loan due 2022. The transaction and the increased secured debt in the capital structure don't materially affect HCHC's adjusted leverage. We estimate the company's adjusted leverage will be at about 5.4x by December 2017 and in the low-5x to high-4x range by year-end 2018 on a pro forma basis. Our estimate includes our estimated cost synergies for the MaxPoint acquisition and our standard adjustments to debt and EBITDA. The unaffected ratings include our '##-' issue-level and '2' recovery ratings on the company's senior secured first-lien debt. The '2' recovery rating indicates...

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