At least two major companies have either filed for Chapter 11 bankruptcy protection or defaulted on loans during the week of November 23 – November 27, 2020. These filings and defaults caused credit issuers to lower ratings for both of the companies. The defaults occurred within the Energy and Consumer Discretionary sectors.
SM Energy Company is an independent energy company that explores and produces crude oil. The company disclosed that it repurchased a large portion of its senior unsecured notes at a below par value. SM Energy repurchased $91.5 million of its 6.125% unsecured notes due in 2022. Additionally, the company repurchased 5% of its unsecured notes due in 2024.
Both repurchases were approximately 72% below par value. S&P views these…