(Bloomberg) -- Platinum Equity-backed Cision Ltd. disclosed to some lenders that it created a new holding company on Nov. 1, a move some lenders are considering as the first step before an asset sale or collateral transfer, according to people familiar with the situation.
The disclosure didn’t explain why the holding company was formed, said the people, who asked not to be identified discussing a private matter. Some of the people also said that Chief Executive Officer Cali Tran subsequently departed Cision, less than two years after his appointment.
Representatives with Cision and Platinum Equity, which acquired the public-relations software firm in January 2020, didn’t respond to requests for comment.
Cision, which owns corporate announcement disseminator PR Newswire, has $2.5 billion of debt, according to data compiled by Bloomberg. Its $1.2 billion first-lien term loan due in 2027 is quoted at nearly 66 cents on the dollar, up from August’s low of 52 cents but still at distressed levels.
Moody’s Ratings downgraded Cision to Caa1 earlier this year and projected the firm would have little —if any — revenue growth in 2024 for reasons including expectations of subdued buyout and financial activities weighing on PR Newswire.
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