Optiv Inc. Downgraded To 'SD' From 'CCC+' On Distressed Debt Exchange; Second-Lien Rating Lowered To 'D'

Optiv Inc. recently completed a second-lien debt exchange transaction that S&P Global Ratings deems a distressed exchange. The company repurchased about $47 million of second-lien debt for about $23 million of cash, which represents more than 50% discount to face value. We are lowering our issuer credit rating on Optiv to 'SD' (selective default) from 'CCC+'. We are also lowering our issue-level rating on the company's initial $230 million of second-lien term loan to 'D' from 'CCC-'. We are placing our 'CCC+' issue-level rating on the company's initial $800 million of first-lien term loan on CreditWatch with negative implications. SAN FRANCISCO (S&P Global Ratings) March 27, 2020—S&P Global Ratings today took the rating actions listed above. The downgrade follows the

...March 27, 2020 - Optiv Inc. recently completed a second-lien debt exchange transaction that S&P Global Ratings deems a distressed exchange. The company repurchased about $47 million of second-lien debt for about $23 million of cash, which represents more than 50% discount to face value. - We are lowering our issuer credit rating on Optiv to '##' (selective default) from '###+'. - We are also lowering our issue-level rating on the company's initial $230 million of second-lien term loan to 'D' from '###-'. - We are placing our '###+' issue-level rating on the company's initial $800 million of first-lien term loan on CreditWatch with negative implications. SAN FRANCISCO (S&P Global Ratings) March 27, 2020--S&P Global Ratings today took the rating actions listed above. The downgrade follows the exchange transaction, which Optiv executed in the fourth quarter of last year, in which it repurchased about $47 million of second-lien debt for about $23 million of cash, representing more than 50%...

Ratings Action