Recovery Report: FTS International LLC's Recovery Rating Profile Jul 12
Standard & Poors, July 2012
Abstract
We are updating our recovery analysis on U.S. based oilfield services company FTS International Services LLC (FTS) to incorporate an updated (lower) valuation for the company in a default scenario. FTS' parent, FTS International Inc. (FTI), is the borrower on a $1.5 billion term loan due 2016, which is structurally subordinated to the debt at FTS. Our simulated default scenario assumes a period of weak hydrocarbon prices and reduced capital spending by exploration and production (E&P) companies, resulting in industry-wide overcapacity, increased competitive pressures, low equipment utilization, and reduced cash flow. FTS is soliciting several consents from its 2018 note holders and term loan holders to, among other things, allow a capital restructuring. Details of the proposed transactions have yet...
Companies mentioned in this report are: FTS International Services LLC
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Research Type: Full Analysis
FTS International Services LLC
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