R.H. Donnelley Is Holding Calls to Discuss Debt Restructuring
R.H. Donnelley, the business- directory publisher, said it’s holding conference calls with bank lenders and an ad hoc committee of bondholders to discuss a restructuring plan.
The talks are aimed at gaining support for a debt restructuring plan before a forbearance agreement expires May 28, the Cary, North Carolina-based company said today in a statement.
R.H. Donnelley missed a $55 million interest payment due on its senior unsecured notes April 15 and failed to pay within a 30-day grace period.
Lenders and bondholders agreed to forbear until May 28 and won’t take any action on the company’s missed payment, R.H. Donnelley said May 14.
Moody’s Investors Service downgraded R.H. Donnelley’s probability of default rating May 18 to Ca/LD from Ca, signaling a limited default after the lapse of the 30-day grace period. The company has a Caa2 corporate family rating, eight steps below investment grade.
In its news release today, R.H. Donnelley said it wouldn’t comment beyond the statement. Tyler Gronbach, a company spokesman, didn’t immediately return a call.