LaserShip Inc. Issuer Credit Rating Raised To 'CCC+' On Debt Restructuring; Outlook Negative; New Debt Rated

LaserShip Inc.(d/b/a OnTrac) completed a distressed debt exchange and issued new debt, improving its short-term liquidity and cash interest expense requirements. As a result, we raised our issuer credit rating on OnTrac to 'CCC+' from 'SD' (selective default). At the same time, we assigned our 'B' issue-level rating to the company's new first-lien first-out super-priority term loan and new revolving credit facility, 'CCC' rating to the new first-lien second-out term loan, and 'CCC-' rating to the new first-lien third-out term loan. We also raised our issue-level rating on OnTrac's existing first-lien and second-lien debt to 'CCC-'. The negative outlook reflects our belief that absent an improvement in OnTrac's financial performance, its free cash flow deficits will continue, rendering it vulnerable

...December 9, 2024 - LaserShip Inc.(d/b/a OnTrac) completed a distressed debt exchange and issued new debt, improving its short-term liquidity and cash interest expense requirements. - As a result, we raised our issuer credit rating on OnTrac to '###+' from '##' (selective default). - At the same time, we assigned our 'B' issue-level rating to the company's new first-lien first-out super-priority term loan and new revolving credit facility, '###' rating to the new first-lien second-out term loan, and '###-' rating to the new first-lien third-out term loan. We also raised our issue-level rating on OnTrac's existing first-lien and second-lien debt to '###-'. - The negative outlook reflects our belief that absent an improvement in OnTrac's financial performance, its free cash flow deficits will continue, rendering it vulnerable to another liquidity shortfall, which could lead to a payment default or cause management to consider undertaking another distressed restructuring. TORONTO (S&P Global...

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