S&P rates Comstock notes B

S&P said it assigned its B issue-level rating and 4 recovery rating to Comstock Resources Inc.’s new senior unsecured debt offering. The 4 recovery rating indicates an average (30%-50%; rounded estimate: 40%) recovery in default.

The proceeds will be used to fund a tender for a portion of its notes due 2025 and 2026, with priority given to the shorter-dated paper.

“The refinancing will reduce Comstock’s cost of debt capital and extend part of its maturity profile to 2029. We do not expect the transactions to materially affect our forecast financial metrics for Comstock; thus, our B issuer credit rating and stable outlook on the company are unchanged,” S&P said in a press release.

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