Research Update: Bright Bidco B.V. 's $175 million Debtor-In-Possession Term Loan Rated 'B+'

Netherlands-based lighting solutions producer Bright Bidco B.V., doing business as Lumileds, is operating under the protection of Chapter 11 of the U.S. Bankruptcy Code following a voluntary filing on Aug. 29, 2022. Lumileds has obtained a $175 million debtor-in-possession (DIP) term loan, the primary purpose of which is to fund one-time administrative expenses of about $30 million, negative working capital of up to $100 million, and sustained capital expenditures (capex), and research and development (R&D) requirements during emergence from bankruptcy. We anticipate the DIP term loan will be refinanced via an automatic conversion into exit financing upon the company's emergence from bankruptcy, which we expect before the year-end. We have assigned the DIP term loan our 'B+' rating. The 'B+'

... Bright Bidco B.V., doing business as Lumileds, is operating under the protection of Chapter 11 of the U.S. Bankruptcy Code following a voluntary filing on Aug. 29, 2022. - Lumileds has obtained a $175 million debtor-in-possession (DIP) term loan, the primary purpose of which is to fund one-time administrative expenses of about $30 million, negative working capital of up to $100 million, and sustained capital expenditures (capex), and research and development (R&D) requirements during emergence from bankruptcy. - We anticipate the DIP term loan will be refinanced via an automatic conversion into exit financing upon the company's emergence from bankruptcy, which we expect before the year-end. - We have assigned the DIP term loan our 'B+' rating. - The 'B+' rating on the DIP primarily reflects our view of the credit risk borne by the DIP term lenders and does not indicate any rating we might assign to the contemplated exit facilities or to the...

Research Update