U.S.-based offshore vessel provider Hornbeck Offshore Services Inc. will complete a debt exchange where holders of a portion of its unsecured notes due 2020 exchange the debt for a new second-lien term loan due 2025. Holders of $131.6 million of the notes will receive $111.9 million of the new loan. We lowered our issuer credit rating on Hornbeck Offshore to 'SD' from 'CC' and our issue-level ratings on the company's unsecured notes due 2020 to 'D' from 'CC'. The issue-level ratings on the company's senior notes due 2019 and 2021 remain 'D' and 'CCC' (recovery rating: '2'), respectively. The '2' recovery rating reflects our estimate of substantial (70%-90%, rounded estimate: 85%) recovery to creditors in the event of a payment
