S&P slices Output Services

S&P said it lowered Output Services Group Inc.’s issuer and first-lien credit facility to CC from CCC and the second-lien credit facility to C from CC after the company agreed to a restructuring.

“The downgrade reflects our view that OSG's proposed restructuring agreement is distressed and tantamount to default. OSG agreed with investors (including holders of about 80% of its first-lien credit facility and 100% of its second-lien credit facility, as well as equity sponsor Aquiline Capital Partners) on terms of a restructuring support agreement expected to close in the third quarter of 2022,” the agency said in a press release.

However, S&P noted the restructuring will reduce OSG’s leverage and deliver liquidity to fund its turnaround plan.

The outlook is negative.

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