...- Blood glucose monitoring (BGM) devices manufacturer LifeScan Global Corp. has entered into an agreement to exchange its existing super-priority cash flow revolver, first-lien term loan, and second-lien term loan for a combination of cash, a consent fee, and amendment to the current outstanding term loans. - We view the proposed second-lien exchange as distressed and, if completed, tantamount to default because we believe the second-lien noteholders will receive less than originally promised. Specifically, we believe the two-year extension in maturity is not adequately offset by increased compensation. We also believe the company faces a realistic probability of a conventional default if the transaction did not occur. - As a result, we lowered our issuer credit rating on LifeScan to '##' from '###+'. In addition, we lowered our ratings on the company's second-lien term loans to 'C' from '###'. Our rating on the company's super-priority cash flow revolver remains 'B', and rating on the...
