Reception Purchaser LLC (STG Logistics) undertook a debt restructuring transaction announced on Oct 3, 2024. Lenders of the existing term loan will receive a discount to par as well as some payment-in-kind (PIK) compensation. Revolver lenders have been offered at par exchange into a first lien, second-out term loan. We view this refinancing transaction as a distressed exchange and a breach of the original promise under the transaction's terms for a significant portion of the company's debt and, therefore, tantamount to a general default. We lowered our issuer credit rating on the company to 'D' (default) from 'B-' and our issue-level rating on its original first-lien facilities to 'D' from 'B-'. Over the coming days, we will reassess our issuer
