Aug. 18 at 9:37 PM
$EBS S&P revised EBS's credit outlook today from stable to negative, while affirming the company's B- issuer rating and CCC+ rating on the 2028 unsecured notes. The distinction is important: S&P did not downgrade the actual rating. But it is warning that the trajectory has become riskier.
There is, however, an interesting positive item that is buried in the credit analysis. S&P estimates EBS had approximately
$280M of cash in July, helped by strong AR collections, plus full availability on its
$50M ABL. And S&P specifically notes the company's authorization to repurchase
$75M of the notes and says additional cash could be used to reduce debt ahead of refinancing. EBS's SEC filing confirms the
$75M note repurchase authorization.
