EagleView Technology Corp. recently completed a debt exchange at par with support from its existing lenders. The exchange transaction followed an extended period of negative cash flow generation and tightening liquidity for the company. S&P Global Ratings views the transaction as distressed and tantamount to default because it provided EagleView's lenders with less than they were originally promised under the credit agreement, including subordinating the claims of the first-lien term loan in the waterfall to the super-priority revolver, the conversion of the second-lien term loan lenders to a more-junior ranking, and the switch to payment-in-kind (PIK) interest payments from cash payments on the second-lien term loan. Therefore, we lowered our issuer credit rating on the company to 'SD' (selective default)
