Blackhawk, TOMS, Charlotte Russe tie up loose ends before holiday market slowdown – Greatest Hits

18 December 2017

With issuers and their advisors squeezing in the last of the year’s business before the late December slowdown, the Debtwire newsroom was humming with activity these past few weeks.

 

Blackhawk Mining inked an amendment in the nick of time to reduce a 31 December amortization payment that could have escalated a pending liquidity crisis, which Debtwire reported on 13 December and the company confirmed with a press release this morning . The coal miner has been consulting with restructuring advisors about its capital structure, after placing its credit facility just this past February.

 

Also dealing with the timing game, Community Health executives previously talked up a plan to address near-term maturities by the end of the year – but with the 2017 primary issuance window now all but closed, the hospital operator’s bonds have fallen thanks to the deafening silence from management over the last few weeks.

 

Trident USA’s sponsors stepped in with an equity cure to head off a covenant violation. The company still faces the impending July 2018 maturity of its revolver, which was fully drawn as of 30 September. Its owner group includes Audax Group, Formation Capital and Revelstoke Capital Partners.

 

TOMS Shoes also got a capital injection from its owners, a group comprised of Bain Capital and founder Blake Mycoskie. The shoe manufacturer’s loans jumped to the mid-to-high 50s, from quotes bracketing 50 before the injection and a 3Q17 earnings report that showed positive momentum.

 

Also looking to raise new money – but from outside investors – is Apollo Management’s The Fresh Market. The sponsor is exploring options for a new loan to replace the borrower’s existing credit facility.

 

And ahead of some restructuring negotiations getting put on hold for the next few weeks, we caught Debtwire readers up on some of the active situations we’re monitoring. Savers is negotiating with its mezzanine debtholder, Crescent Capital, for a potential equitization deal, and Bi-Lo has resurrected balance sheet negotiations with some of its bondholders.

 

Iconix convertible bondholders are starting to get restricted, and Cenveo’s first lien bondholders are also getting restricted and angling to put together a plan establishing themselves as the fulcrum security. Soon after Debtwire reported on the Cenveo bondholder talks, our legal analyst team also weighed in with a snapshot of the web of security interests that are sure to come into play in any upcoming restructuring.

 

EP Energy bondholders quickly got together after the company launched an exchange offer, to pitch a counterproposal of their own. The issuer ended up modifying the terms of its offer as well as extending the early tender date several times.

 

EXCO Resources, meanwhile, after several piecemeal restructuring deals over the last several years, has begun planning for bankruptcy and even held meetings with investors to discuss a potential DIP financing. The Debtwire legal analyst team also looked at EXCO’s restructuring options to preview potential recovery scenarios.

 

Also in the oil & gas space, we published an Oil & Gas Sector Review compiling data and research on the industry, with a focus on recently reorganized operators, and then highlighted some of the findings in a podcast discussion featuring Kyle Younker, Debtwire senior reporter; Jack Tracy, head of legal analysis for the Americas, and Tim Hynes, head of North America Credit Research.

 

Charlotte Russe finally announced an out-of-court restructuring deal last week, after Debtwire published months before that talks were underway for a deal.

 

Debtwire helped explain trading volatility last week for two private equity-owned pet supply retailers. Both PetSmart, held by BC Partners, and Petco –  CVC Capital Partners and CPPIB – reported disappointing year-over-year results that pressured the two already stressed capital structures. In addition, ominous comments about 4Q trends made by PetSmart executives on its call added to the downward pressure.

 

We also brought to light exclusive earnings for several other noteworthy companies, including declines at Hot TopicDel Monte and Techniplas. Elsewhere, Guitar Center reported a bump in EBITDA, while Longview Power struggled to keep EBITDA in positive territory thanks to depressed power prices.