Bulletin: Harland Clarke Holdings Corp. Ratings Unaffected By The Company's Proposed Credit Agreement And Term Loan Add-On

NEW YORK (S&P Global Ratings) Feb. 9, 2017--S&P Global Ratings said today that its ratings and outlook on Harland Clarke Holdings Corp. (HCHC; B+/Stable/--) are not affected by the company's announcement that it is amending its credit agreement and issuing a $325 million add-on to its senior secured term loan B-6. The amendment also resets the term loan B-5's maturity date to 2021 from 2019. We expect that HCHC's adjusted leverage will remain in the high-4x area in 2016 and then decline to the mid- to high-4x area in 2017 after the company pays roughly $100 million of required principal amortization payments. We continue to expect HCHC to generate good discretionary cash flow and refinance or extend its upcoming debt

...NEW YORK (S&P Global Ratings) Feb. 9, 2017--S&P Global Ratings said today that its ratings and outlook on Harland Clarke Holdings Corp. (HCHC; B+/Stable/--) are not affected by the company's announcement that it is amending its credit agreement and issuing a $325 million add-on to its senior secured term loan B-6. The amendment also resets the term loan B-5's maturity date to 2021 from 2019. We expect that HCHC's adjusted leverage will remain in the high-4x area in 2016 and then decline to the mid- to high-4x area in 2017 after the company pays roughly $100 million of required principal amortization payments. We continue to expect HCHC to generate good discretionary cash flow and refinance or extend its upcoming debt maturities at similar interest rates at least 12 months before maturity. The unaffected ratings include our '##-' issue-level and '2' recovery ratings on the company's $550 million senior secured term loan B-6 due February 2022 and $350 million senior secured notes due August...

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