...November 22, 2024 - LaserShip Inc. (d/b/a OnTrac) completed the first phase of its announced debt restructuring transaction on Nov. 14, 2024. As part of the restructuring, the lenders of the company's existing term loans received new loans at a discount to par, as well as some payment-in-kind (PIK) compensation. In addition, the lenders of OnTrac's existing revolver were repaid in full, the facility was cancelled, and it established a new revolver. - We view this refinancing as a distressed exchange and a breach of the company's original promises under a significant portion of its debt. Therefore, we view the transaction as tantamount to a selective default. - S&P Global Ratings lowered its issuer credit rating on OnTrac to '##' (selective default) from '###-' and our issue-level rating on its original first- and second-lien term loans to 'D' from '###-' and 'C', respectively. - Over the coming days, we will reassess our issuer credit rating on OnTrac based on its new capital structure....
