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.
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