Deals
Carlyle’s Sequa Cut by S&P as Maturity Looms for All Its Debt
- Rating falls to CCC with negative outlook, shrinking revolver
- Scenarios include liquidity crunch or distressed debt swap
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Doubts are rising about whether Sequa Corp., the aerospace parts servicer controlled by The Carlyle Group LP, can handle more than $1.6 billion of debt maturities next year amid an onslaught from bigger competitors and a drought in demand from developing markets.
S&P Global Ratings reduced Sequa’s corporate credit rating on Thursday to CCC from CCC+, or eight levels below investment grade, and warned another cut may be coming. All of Sequa’s debt is due next year, according to S&P, starting with its $1.3 billion term loan in June 2017, followed by $350 million of bonds in December.