Research Update: Hornbeck Offshore Services Inc. Downgraded To 'CC' From 'CCC-' On Distressed Debt Exchange Offer; Outlook Negative

Offshore supply vessel operator Hornbeck Offshore Services Inc. announced a debt exchange offer of new second-lien term loans for the company's 5.875% unsecured notes due 2020. We are lowering the issuer credit rating to 'CC' from 'CCC-'. We are also lowering our issue-level rating on the company's senior unsecured notes due 2020 to 'CC' from 'CCC', and would lower the issue-level rating to 'D' upon completion of the transaction. The company announced that it drew the remaining $136.7 million available under its existing first-lien delayed-draw term loan facility, which is now fully funded at $300 million. The negative outlook reflects our expectation that we would lower the issuer credit rating to 'SD' and the issue-level ratings on the company's 2020

...+ Offshore supply vessel operator Hornbeck Offshore Services Inc. announced a debt exchange offer of new second-lien term loans for the company's 5.875% unsecured notes due 2020. + We are lowering the issuer credit rating to '##' from '###-'. + We are also lowering our issue-level rating on the company's senior unsecured notes due 2020 to '##' from '###', and would lower the issue-level rating to 'D' upon completion of the transaction. + The company announced that it drew the remaining $136.7 million available under its existing first-lien delayed-draw term loan facility, which is now fully funded at $300 million. + The negative outlook reflects our expectation that we would lower the issuer credit rating to '##' and the issue-level ratings on the company's 2020 notes to 'D' upon completion of the transaction....

Research Update