Harland Clarke Holdings Corp. 'B+' Rating Affirmed On Proposed Debt Refinancing; Outlook Remains Stable; New Debt Rated

U.S.-based media delivery, payment solution, and marketing services provider Harland Clarke Holdings Corp. (HCHC) plans to issue a new $800 million tranche under its existing senior secured credit facility to refinance its 2017 debt maturity and a portion of its 2018 debt maturities. We are affirming our ratings on HCHC, including the 'B+' corporate credit rating. The recovery ratings are unchanged. We are also assigning our 'BB-' issue-level rating and '2' recovery rating to the company's proposed $800 million first-lien senior secured term loan due December 2019. The stable rating outlook reflects our expectation that HCHC's leverage will remain below 5x, the company will continue to generate good discretionary cash flow, and it will refinance or extend its upcoming debt

...+ U.S.-based media delivery, payment solution, and marketing services provider Harland Clarke Holdings Corp. (HCHC) plans to issue a new $800 million tranche under its existing senior secured credit facility to refinance its 2017 debt maturity and a portion of its 2018 debt maturities. + We are affirming our ratings on HCHC, including the 'B+' corporate credit rating. The recovery ratings are unchanged. + We are also assigning our '##-' issue-level rating and '2' recovery rating to the company's proposed $800 million first-lien senior secured term loan due December 2019. + The stable rating outlook reflects our expectation that HCHC's leverage will remain below 5x, the company will continue to generate good discretionary cash flow, and it will refinance or extend its upcoming debt maturities at similar interest rates at least 12 months before maturity. CHICAGO (S&P Global Ratings) June 2, 2016--S&P Global Ratings today said it has affirmed its 'B+' corporate credit rating on San Antonio,...

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