S&P: Pesquera Exalmar on watch after tender offer

S&P said it affirmed the B long-term corporate credit and issue-level ratings on Pesquera Exalmar SAA and maintained its CreditWatch negative listing.

The watch listing reflects the potential negative implications on the company’s issue-level rating if the existing notes due 2020 become structurally subordinated to the secured debt that would be used to fund a proposed tender offer.

The company announced July 12 a tender offer for up to 51% of its $200 million 7 3/8% notes outstanding due 2020, which the company plans to fund in part with secured debt.

The negative watch also continues to incorporate the downside risks related to the delays in announcing a lower-than-expected fishing quota for the first season of 2016, S&P said, and the potential impact on production volumes.

The agency said it will resolve the CreditWatch listing within the next 90 days after the tender offer is completed and once the company’s liquidity and cash flow generation prospects are assessed.

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