On August 9, 2017, S&P Global Ratings lowered its corporate credit rating on Hornbeck Offshore Services, Inc. to SD from CCC- and its convertible notes due 2019 to D from CCC. According to S&P Global, the downgrade follows the disclosure that Hornbeck Offshore has completed a debt exchange, whereby holders of $200 million of its convertible notes due 2019 and $8.1 million of its senior notes due 2020 exchanged the debt for $95.3 million of a new secured first lien term loan credit facility due 2023 and $54.1 million in cash. S&P views this exchange as distressed since the value received was less than the promise of the original securities and because they believed there was a realistic possibility of a conventional default prior to the exchange. 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.