Research Update: Range Parent Inc. Downgraded To 'SD' From 'CCC' On Debt-Restructuring; Certain Issue Level Ratings Lowered To 'D'

On Dec. 8, 2023, Range Parent Inc. (Robertshaw) entered into a debt-restructuring transaction with its financial sponsor One Rock Capital Partners, LLC (One Rock) and certain parties of its existing lending group. The company replaced its $50 million asset-based lending (ABL) facility and existing $117 million first-out super priority lending facility with a $218 million first-out facility as well as funded an additional $10 million to the second-out facility. About $44 million of proceeds (after debt repayment, accrued interest, prepayment premium and fees) were placed on the company's balance sheet for working capital and to help fund the next two quarterly interest payments. In our view, the transaction is distressed and tantamount to a default because the incremental first-out debt

...- On Dec. 8, 2023, Range Parent Inc. (Robertshaw) entered into a debt-restructuring transaction with its financial sponsor One Rock Capital Partners, LLC (One Rock) and certain parties of its existing lending group. The company replaced its $50 million asset-based lending (ABL) facility and existing $117 million first-out super priority lending facility with a $218 million first-out facility as well as funded an additional $10 million to the second-out facility. About $44 million of proceeds (after debt repayment, accrued interest, prepayment premium and fees) were placed on the company's balance sheet for working capital and to help fund the next two quarterly interest payments. - In our view, the transaction is distressed and tantamount to a default because the incremental first-out debt effectively alters the priority for the remaining second through fifth-out term loan facilities. - Therefore, we lowered our issuer credit rating on the company to '##' (selective default) from '###'....

Research Update