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By Dean Seal
Shares of Digital Media Solutions dropped after S&P Global Ratings downgraded the company’s credit rating to selective default.
The stock was down 15% at $3.81 in early trading. Shares have fallen 82% this year.
After the bell S&P said it is highly likely the advertising technology company will defer upcoming payments on interest for its $50 million credit facility and $225 million term loan, which it will consider to be a distressed exchange and tantamount to default since the timing of cash payments will slow.
S&P is downgrading the company’s credit rating to selective default from CCC+ and also downgrading the issue-level ratings on its credit facility and term loan.
The agency also said that it expects the company’s performance will remain challenged for the rest of the year “due to weak macroeconomic conditions driving significant lower ad spending on its platform and sales through its independent insurance agents.”
Write to Dean Seal at [email protected]
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