S&P: Logan’s and EXCO defaults raise 2015 year-to-date tally to 89

By Caroline Salls

Pittsburgh, Oct. 26 – Standard & Poor’s year-to-date global corporate default tall increased to 89 with two new defaults recorded for the week of Oct. 15 through Oct. 21, according to a news release.

S&P said it lowered its corporate credit rating on Logan’s Roadhouse Inc. to SD from CCC following the company’s distressed exchange of $106.8 million of its senior secured notes for $113 million of series 2015-1 senior secured zero-coupon notes and $104.3 million of its notes for $109.7 million of series 2015-2 senior secured notes.

In addition, S&P lowered its corporate credit rating on EXCO Resources Inc. to SD from B- and its issue-level ratings on EXCO’s senior unsecured notes due 2018 and 2022 to D from CCC after the company agreed to exchange a portion of the senior unsecured notes for a new senior secured term loan at a 49% discount to par.

Of the 89 defaulting companies so far in 2015, the ratings agency said 29 defaulted because of distressed exchanges, 24 because of missed interest or principal payments, 18 because of bankruptcy filings, nine following regulatory intervention and one each because of a regulatory intervention and a de facto debt-for-equity swap. The other seven defaults were confidential.

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