Neovia Logistics L.P. announced that it has entered into a restructuring agreement with its lenders to exchange its first-lien term loan for a combination of preferred equity and debt and to exchange its second-lien term loan for equity. Upon closing, we will view the transaction as a distressed exchange that offers debtholders less than originally promised and tantamount to a default. We continue to assess liquidity as less than adequate. Therefore, we lowered our issuer credit rating on the company to 'CC' from 'CCC-'. We also lowered our issue-level rating on the first-lien term loan to 'C' from 'CCC-'. At the same time, we revised our recovery rating to '5' (rounded estimate: 20%) from '4' due to additional senior debt
