On November 3, 2020, S&P Global Ratings lowered its issuer credit rating on Callon Petroleum Company to CC from CCC+ and its unsecured notes rating to CC from B-. The downgrade follows the announcement that Callon entered into a privately negotiated agreement with certain holders of its unsecured debt, across all maturities, to exchange $286 million of principal of unsecured notes for $158 million of principal of new 9% second-lien notes due in 2025 at a weighted-average ratio of $555 per $1,000 of principal exchanged, according to the ratings agency. Participants will also receive between 1.16 million and 1.76 million warrants, dependent on participation levels, with a strike price of $5.60. If the exchange is consummated as proposed, S&P Global would view it as distressed.

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