Laredo Petroleum Inc. Senior Unsecured Notes Recovery Rating Revised To '3' From '4'

NEW YORK (S&P Global Ratings) Jan. 9, 2018--S&P Global Ratings today revised its recovery rating on Tulsa, Okla.–based oil and gas exploration and production company Laredo Petroleum Inc.'s senior unsecured notes to '3' from '4'. The '3' recovery rating indicates our expectation of meaningful (50%-70%; rounded estimate: 55%) recovery for creditors in the event of a payment default. This is up from our prior recovery expectations of 35%. The 'B+' issue-level rating on the company's unsecured debt is unchanged. The recovery rating revision reflects the company's redemption of all its $500 million 7.375% senior unsecured notes due 2022 in November 2017, using proceeds from the sale of its Medallion midstream business. On Oct. 20, 2017, the lenders reaffirmed the $1

...NEW YORK (S&P Global Ratings) Jan. 9, 2018--S&P Global Ratings today revised its recovery rating on Tulsa, Okla.¡based oil and gas exploration and production company Laredo Petroleum Inc.'s senior unsecured notes to '3' from '4'. The '3' recovery rating indicates our expectation of meaningful (50%-70%; rounded estimate: 55%) recovery for creditors in the event of a payment default. This is up from our prior recovery expectations of 35%. The 'B+' issue-level rating on the company's unsecured debt is unchanged. The recovery rating revision reflects the company's redemption of all its $500 million 7.375% senior unsecured notes due 2022 in November 2017, using proceeds from the sale of its Medallion midstream business. On Oct. 20, 2017, the lenders reaffirmed the $1 billion borrowing base and commitment on Laredo's reserve-based loan (RBL) facility maturing in 2022. RECOVERY ANALYSIS Key analytical factors: + Our analysis incorporates Laredo's $1 billion borrowing base and elected commitment...

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