Optiv Inc. recently completed a second-lien debt exchange transaction that S&P Global Ratings deems a distressed exchange. The company repurchased about $47 million of second-lien debt for about $23 million of cash, which represents more than 50% discount to face value. We are lowering our issuer credit rating on Optiv to 'SD' (selective default) from 'CCC+'. We are also lowering our issue-level rating on the company's initial $230 million of second-lien term loan to 'D' from 'CCC-'. We are placing our 'CCC+' issue-level rating on the company's initial $800 million of first-lien term loan on CreditWatch with negative implications. The downgrade follows the exchange transaction, which Optiv executed in the fourth quarter of last year, in which it repurchased about
