Reception Purchaser LLC Issuer Credit Rating Raised To 'CCC+' On Debt Restructuring; Outlook Negative; New Debt Rated

Reception Purchaser LLC (dba STG Logistics) completed a distressed debt exchange and issued new debt, improving its short-term liquidity and cash interest expense requirements. We raised our issuer credit rating on STG to 'CCC+' from 'D' (default). At the same time, we assigned our 'B' issue-level rating to the company's new first-lien first-out term loan, '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 STG's existing first-lien debt to 'CCC'. The negative outlook reflects our belief that absent an improvement in the freight market conditions, STG's continued free cash flow deficits will render it vulnerable to a liquidity shortfall, which could lead to

...October 29, 2024 - Reception Purchaser LLC (dba STG Logistics) completed a distressed debt exchange and issued new debt, improving its short-term liquidity and cash interest expense requirements. - We raised our issuer credit rating on STG to '###+' from 'D' (default). - At the same time, we assigned our 'B' issue-level rating to the company's new first-lien first-out term loan, '###+' 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 STG's existing first-lien debt to '###'. - The negative outlook reflects our belief that absent an improvement in the freight market conditions, STG's continued free cash flow deficits will render it vulnerable to a liquidity shortfall, which could lead to a payment default or cause management to consider undertaking another distressed restructuring. TORONTO (S&P Global Ratings) Oct. 29, 2024--S&P Global Ratings today took the rating actions listed above....

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