| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers H > Headlines for Hercules Offshore Inc. > News item |
S&P downgrades Hercules
Standard & Poor’s said it lowered the corporate credit rating on Hercules Offshore Inc. to CC from CCC+, along with the rating on the company’s senior unsecured notes to CC from CCC+.
S&P also said it placed the ratings on CreditWatch with negative implications.
The 4 recovery rating on the senior unsecured notes is unchanged, reflecting 30% to 50% expected default recovery.
The downgrade follows news that Hercules entered into a restructuring support agreement with a steering group of the company’s senior noteholders, collectively owning or controlling in excess of 67% of the aggregate outstanding principal amount of the company’s 10¼% senior notes due 2019, 8¾% senior notes due 2021, 7½% senior notes due 2021 and 6¾% senior notes due 2022.
Under the agreement, the company and the noteholders will seek to implement this balance-sheet restructuring through either a Ch. 11 case or prepackaged plan of reorganization, S&P said.
The agency said it will re-evaluate the company’s corporate credit rating upon implementation of the restructuring or filing Ch. 11 of the bankruptcy code.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.