Reorg’s expansion into the municipal market uncovers opportunities…

Written by Seth Brumby in New York | Reorg’s expansion into the municipal market continues to uncover opportunities while forecasting major credit events. Readers took a keen interest in coverage of Limetree Bay, a distressed situation that grew out of municipal coverage of the U.S. Virgin Islands. The Reorg municipal and Americas editorial teams joined resources over the past few weeks, producing a series of scoops on advisor mandates that foreshadowed the refinery’s eventual chapter 11 filing this week in the Southern District of Texas.

Advisor mandates have long been an important leading indicator of an impending transaction. With that in mind, Reorg continues to uncover future distressed situations for its municipal readership including advisor mandates for Foxwoods Resort Casino and American Dream Mall. Both situations involve billions in municipal debt that will likely restructure in the coming months.

Further out on the distressed timeline is a group of continuing care retirement communities (CCRCs) that have tapped the market in recent months amid a growing glut of defaults in the industry. While ostensibly robust credits such as Vicar’s Landing tapped the primary market to finance expansions, this post-pandemic group of CCRCs could provide a crop of distressed opportunities for investors over the coming months and years. Recent and looming defaults for CCRCs such as Buckingham Senior Living, H-Bay Industries and American Eagle all point toward a near-term credit cycle. Sign up for weekly updates here.