Vericast Corp.

However, we believe there remains substantial refinancing risk for the company due to the $800 million in 8.375% senior secured notes due in 2022. The company's term loan due 2023 has $1.514 billion outstanding and a springing maturity that accelerates to May 2022 if the 8.375% notes are not refinanced at that time. We believe the company is materially dependent on favorable capital markets conditions and lender support to complete these refinancings over the next two years. The negative outlook reflects the risk that secular declines in Vericast's key segments, high leverage, and lack of significant sustained cash-flow generation due to operational challenges could accelerate such that the company's liquidity becomes strained and it is unable to service its debt

...Vericast faces substantial refinancing risk over the next two years despite recently addressing its nearest-term maturities. The company is addressing the refinancing of its 9.25% senior unsecured notes due 2021 with a two-part debt exchange. Vericast successfully refinanced the first portion of these 2021 notes with $325 million of 12.5% senior secured notes in the first quarter of 2020, and we expect the company will redeem the remaining $336 million of its unsecured notes with cash on hand and the $420 million in proceeds from its recent RetailMeNot divestiture. We expect this redemption to be completed by the end of November 2020. However, we believe there remains substantial refinancing risk for the company due to the $800 million in 8.375% senior secured notes due in 2022. The company's term loan due 2023 has $1.514 billion outstanding and a springing maturity that accelerates to May 2022 if the 8.375% notes are not refinanced at that time. We believe the company is materially dependent...

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