S&P cuts Voyager Aviation

S&P said it cut Voyager Aviation Holdings LLC to SD from CC and its senior unsecured notes D from C.

“The downgrade reflects our view that the recently completed restructuring represents a selective default on the senior unsecured notes. On May 10, 2021, Voyager announced that it had completed the restructuring of its $415 million senior unsecured notes due Aug. 15, 2021. About 98.49% of Voyager's existing bondholders (amounting to approximately $409 million of the $415 million notes) and all its equity holders approved the transaction,” S&P said in a press release.

Under the restructuring, the senior unsecured notes due Aug. 15, are being exchanged for $150 million in 8˝% senior secured notes due in 2026, $200 million in preferred equity and 100% of Voyager's common equity.

“We view the transaction as a distressed exchange and tantamount to default because bondholders are receiving less than originally promised,” S&P said in a press release.

Subsequently, the agency said it withdrew all its Voyager ratings.

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