On March 9, 2017, S&P Global Ratings lowered its long-term corporate credit rating on Millar Western Forest Products Ltd. to CC from B- and its senior unsecured notes to CC from B-. “The downgrade and CreditWatch placement reflect our view of the proposed exchange offering as a distressed exchange,” said S&P Global Ratings credit analyst Alessio Di Francesco. In the proposed exchange, the Company’s 8.5% senior unsecured notes due 2021 would be exchanged partially for 9.0% new senior secured notes due 2022. S&P views the tender for the 2021 notes as stressed because participating noteholders will receive less than the original amount promised. S&P expects the exchange transaction will be completed by April 28, 2017. 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.