RE: S&P Cuts Yellow Media to 'D' Sorry bad link:
https://www.reuters.com/article/2012/12/20/idUSWNB245320121220
-- Montreal-based media and marketing solutions provider Yellow Media Inc. (YMI) has implemented its amended debt recapitalization plan following necessary stakeholder and court approvals. -- The recapitalization comprises the sub-par exchange of the company's existing debt with cash, new debt, and shares of a recapitalized YMI (new YMI), and constitutes an event of default as per Standard & Poor's criteria. -- Accordingly, we are lowering our long-term corporate credit rating on YMI and its related entities to 'D' (default) from 'CC'. -- At the same time, we are lowering our issue-level rating on the company's medium-term notes to 'D' from 'CC', and lowering our ratings on the company's convertible subordinated debentures outstanding to 'D' from 'C'. The recovery ratings on these debt obligations are unchanged.Rating ActionOn Dec. 20, 2012, Standard & Poor's Ratings Services lowered its long-term corporate credit rating on Montreal-based media and marketing solutions provider Yellow Media Inc. to 'D' (default) from 'CC'. At the same time, Standard & Poor's lowered its issue-level rating on the company's medium-term notes outstanding to 'D' from 'CC' and lowered its ratings on the company's convertible subordinated debentures to 'D' from 'C'. The recovery ratings on these debt obligations are unchanged. The 'D' ratings on the company's preferred shares are unchanged. At Sept. 30, 2012, YMI reported C$1.96 billion of gross debt and C$721 million of preferred shares outstanding.RationaleThe downgrade follows the company's Dec. 20, 2012, completion of a sub-par exchange of its debt outstanding for cash, new debt obligations, and shares of a recapitalized YMI (new YMI). The debt exchange constitutes an event of default as per Standard & Poor's criteria. Following the recapitalization, the new YMI will have C$907.5 million of reported debt obligations comprising C$800 million of new senior secured notes and C$107.5 million of new senior subordinated exchangeable debentures. The recapitalization results in the reduction of about C$1.5 billion in YMI's principal amount of debt (including the series 1 and series 2 preferred shares), and is aimed at improving the company's financial flexibility, which is necessary to advance its business transformation to a digital media and marketing solutions company.YMI is a leading media and marketing solutions company in Canada. It owns and operates some of Canada's leading properties and publications including Yellow Pages print directories, YellowPages.ca, Canada411.ca, and RedFlagDeals.com. YMI is also a leader in national digital advertising through Mediative Digital Marketing Co., a digital advertising and marketing solutions provider to national agencies and advertisers.Related Criteria And Research -- Rating Implications of Exchange Offers and Similar Restructurings, Update, May 12, 2009 -- 2008 Corporate Criteria: Analytical Methodology, April 15, 2008Ratings ListRatings Lowered/Recovery Ratings Unchanged To FromYellow Media Inc.Corporate credit rating D/--/-- CC/Negative/--Medium-term notes D CC Recovery rating 4 4Subordinated debentures D C Recovery rating 6 6Ratings UnchangedYellow Media Inc.Preference stock D (Caryn Trokie, New York Ratings Unit)