On September 1, 2017, S&P Global Ratings lowered its corporate credit rating on Boart Longyear Limited to SD from CC, its senior secured notes due 2018 to D from CCC- and its senior unsecured notes due 2021 to D from C. According to S&P Global, the downgrade follows Boart Longyear’s announcement that it has completed an exchange offer in which $196 million of the Company’s 7% senior unsecured notes due 2021 are converted into common equity. S&P views this as a distressed transaction because there is a realistic possibility of a conventional default without the transaction and participating noteholders received less than the original amount promised. At the same time, the Company reinstated the senior secured notes due 2018 at approximately $200 million, plus accrued interest. The senior secured notes now expire December 2022 and Boart has the option to pay payment-in-kind (PIK) interest for the first four quarters. Read more on distressed companies.
About Kerry Mastroianni
Kerry Mastroianni, the editor of The Distressed Company Alert, has been researching distressed and bankrupt companies for over 18 years. As a 10-year employee of New Generation Research, she is also a data editor for Bankruptcy Week and the editor for our annual Bankruptcy Yearbook & Almanac. Prior to Kerry’s employment at NGR, she worked for eight years as a research analyst for KPMG’s corporate recovery practice.