Harland Clarke Holdings Corp. Rating Lowered To 'B-' On Declining Cash Flow At Valassis And Increased Refinancing Risk - S&P Global Ratings’ Credit Research

Harland Clarke Holdings Corp. Rating Lowered To 'B-' On Declining Cash Flow At Valassis And Increased Refinancing Risk

Harland Clarke Holdings Corp. Rating Lowered To 'B-' On Declining Cash Flow At Valassis And Increased Refinancing Risk - S&P Global Ratings’ Credit Research
Harland Clarke Holdings Corp. Rating Lowered To 'B-' On Declining Cash Flow At Valassis And Increased Refinancing Risk
Published Apr 22, 2019
3 pages (1623 words) — Published Apr 22, 2019
Price US$ 150.00  |  Buy this Report Now

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Abstract:

U.S.-based payment solution and marketing services provider Harland Clarke Holdings Corp. (HCHC) underperformed our expectations in 2018 due to a double-digit EBTIDA decline in its Valassis' shared mail business. As a result, the company faces elevated refinancing risks in 2020 because $275 million of senior secured notes are due March 2020 and the maturity on the $1.664 (outstanding) billion senior secured term loan springs forward to November 2020 if its $708.5 million 9.25% senior unsecured notes are still outstanding at that time. Leverage increased to 6.3x in 2018 from 5.6x in 2017, and we expect it will remain above 6x in 2019. We are lowering our issuer credit rating on Harland to 'B-' from 'B'. The outlook is stable. We

  
Report Type:

Ratings Action

Ticker
664088Z
Issuer
Vericast Corp.
GICS
Commercial Printing (20201010)
Sector
Global Issuers
Country
United States
Region
United States
Format:
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MLA:
S&P Global Ratings’ Credit Research. "Harland Clarke Holdings Corp. Rating Lowered To 'B-' On Declining Cash Flow At Valassis And Increased Refinancing Risk" Apr 22, 2019. Alacra Store. May 03, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Harland-Clarke-Holdings-Corp-Rating-Lowered-To-B-On-Declining-Cash-Flow-At-Valassis-And-Increased-Refinancing-Risk-2219525>
  
APA:
S&P Global Ratings’ Credit Research. (). Harland Clarke Holdings Corp. Rating Lowered To 'B-' On Declining Cash Flow At Valassis And Increased Refinancing Risk Apr 22, 2019. New York, NY: Alacra Store. Retrieved May 03, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Harland-Clarke-Holdings-Corp-Rating-Lowered-To-B-On-Declining-Cash-Flow-At-Valassis-And-Increased-Refinancing-Risk-2219525>
  
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