| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers W > Headlines for W&T Offshore, Inc. > News item |
S&P puts W&T 9¾% notes on watch
S&P said it placed the ratings on W&T Offshore Inc.’s senior secured debt and 9¾% second-lien notes due 2023 on CreditWatch with negative implications.
The placement follows W&T’s plan to sell its Mobile Bay assets to a wholly owned special purpose vehicle for net cash proceeds from a $215 million first-lien nonrecourse term loan issued by the SPV.
The asset sale removes about 55% of proved reserves from the collateral pool supporting the second-lien notes, the SPV will have a first lien on those assets. “Given the significant reduction in collateral and expected negative impact to our recovery estimate available to support the non-SPV debt, we have placed the senior secured ratings on CreditWatch with negative implications given the possibility of a reduction in recovery and resulting rating,” the agency said.
“The CreditWatch placement reflects the potential to lower the ratings pending an analysis once we know the borrowing base on W&T's reserve base lending facility (RBL) and receive an updated reserve valuation based on our recovery assumptions,” S&P said.
The outlook is negative.
© 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.