TORONTO (Standard & Poor's) May 18, 2011-Standard & Poor's Rating Services today said it assigned its 'BB-' issue rating and '1' recovery rating to Calgary, Alta.-based Connacher Oil and Gas Ltd.'s proposed US$900 million senior secured second-lien debt. A '1' recovery rating indicates our expectations of very high (90%-100%) recovery in a default scenario. This new debt issue will effectively refinance the company's existing senior secured first- and second-lien debt. As a result, we expect to withdraw our ratings on Connacher's existing debt following completion of this new issue. "We expect Connacher should be able to refinance its debt at more favorable terms than those associated with its current senior secured first- and second-lien debt. Moreover, this bond issue will...
Companies mentioned in this report are: Connacher Oil and Gas Ltd
Action: New Rating
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Research type: News
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