11.04.2020

Will Coronavirus be lethal for Cirque du Soleil?

• Description

  According to S&P Global Ratings, Cirque du Soleil did not pay principal and interest on its first-lien term loan, and did not pay interest on its second-lien term loan, both due March 31. On April 3, 2020—S&P Global Ratings took the rating actions and lowered ratings to 'D' because Cirque did not pay principal and interest on its first-lien term loan, and did not pay interest on its second-lien term loan, both due March 31. In addition, S&P expect the event of default on the first-lien term loan that will trigger a cross default under provisions in the second-lien term loan credit agreement.

  

  S&P understands that prior to default Cirque had $100 million drawn on the revolving credit facility. In addition to the revolver, Cirque had $784 million of first-lien term loan, $150 million of second lien-term loan, $60 million of unsecured debt and $16 million of letters of credit outstanding under the revolver as of March 31, 2020. 

  D: is in payment default. Obligation not made on due date and grace period may not have expired. The rating is also used upon the filing of a bankruptcy petition.

  Photo: Cirque du Soleil