Bulletin: Lightstone HoldCo LLC's Dutch Auction-Style Prepayment Offer Viewed As Opportunistic

TORONTO (S&P Global Ratings) Oct. 11, 2023--S&P Global Ratings today said that it views Lightstone HoldCo LLC's (B-/Stable/--) announced Dutch auction-style prepayment offer to purchase up to $40 million of its outstanding secured term loan B/C debt obligations as opportunistic rather than distressed. The company will use cash from its operations to prepay part of its outstanding debt, which currently trades in the $90-$95 range. Our ratings and adequate liquidity assessment on Lightstone are unchanged. We use market cues, among other factors, to make such determinations as opportunistic or distressed. Furthermore, the long-dated nature of the debt and the relatively low pre-payment compared to the total outstanding amount (about $1.35 billion) supports our view that this transaction is opportunistic, not

...October 11, 2023 TORONTO (S&P Global Ratings) Oct. 11, 2023--S&P Global Ratings today said that it views Lightstone HoldCo LLC's (B-/Stable/--) announced Dutch auction-style prepayment offer to purchase up to $40 million of its outstanding secured term loan B/C debt obligations as opportunistic rather than distressed. The company will use cash from its operations to prepay part of its outstanding debt, which currently trades in the $90-$95 range. Our ratings and adequate liquidity assessment on Lightstone are unchanged. We use market cues, among other factors, to make such determinations as opportunistic or distressed. Furthermore, the long-dated nature of the debt and the relatively low pre-payment compared to the total outstanding amount (about $1.35 billion) supports our view that this transaction is opportunistic, not distressed. If the offer is not accepted, the company is not at risk of a conventional default on these instruments over the next few years. However, we could view future...

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