FullBeauty Brands
FULLBEAUTY Sponsor Apax Partners Working With PJT Partners to Explore Discounted Debt Buybacks
Tue 08/14/2018 11:02 AM
FULLBEAUTY Brands’ financial sponsor Apax Partners is working with PJT Partners as financial advisor to explore debt buy back options, according to sources. The retention comes as the online plus-size apparel retailer’s debt, which starts coming due in 2020, has dipped to deeply distressed levels. The company’s term loan B is quoted today at 39/41, while the second lien term loan is quoted in the 11/16 context, according to a trading desk.
As previously reported, Davis Polk is working with a group of lenders primarily holding the company’s term loan B due in 2022 and had requested a meeting with management to gain insight into the company’s performance. Davis Polk had also requested a collateral review and perfection analysis of the company’s $75 million first-in, last-out (FILO) asset-based loan by Cahill Gordon, counsel to administrative agent JP Morgan.
A separate group of term lenders is working with Ducera Partners and Milbank Tweed, the sources said.
FULLBEAUTY reported for the first quarter ended March 31 a 32% year-over-year decline in EBITDA to $17 million from $25 million and a 3.5% decline in revenue to $204 million. The company ended the first quarter with $86 million of liquidity, split between $60 million of availability under its undrawn $100 million asset-based revolver due in 2020 and $26 million of cash.
Acquired by Apax in a 2015 leveraged buyout, FULLBEAUTY has faced competition from new entrants and from Amazon and department stores, such as Kohl's, Walmart and J.C. Penney, which have refocused on the plus-size demographic.
Apax and Ducera declined to comment. PJT and Milbank did not respond to requests for comment.
As previously reported, Davis Polk is working with a group of lenders primarily holding the company’s term loan B due in 2022 and had requested a meeting with management to gain insight into the company’s performance. Davis Polk had also requested a collateral review and perfection analysis of the company’s $75 million first-in, last-out (FILO) asset-based loan by Cahill Gordon, counsel to administrative agent JP Morgan.
A separate group of term lenders is working with Ducera Partners and Milbank Tweed, the sources said.
FULLBEAUTY reported for the first quarter ended March 31 a 32% year-over-year decline in EBITDA to $17 million from $25 million and a 3.5% decline in revenue to $204 million. The company ended the first quarter with $86 million of liquidity, split between $60 million of availability under its undrawn $100 million asset-based revolver due in 2020 and $26 million of cash.
Acquired by Apax in a 2015 leveraged buyout, FULLBEAUTY has faced competition from new entrants and from Amazon and department stores, such as Kohl's, Walmart and J.C. Penney, which have refocused on the plus-size demographic.
Apax and Ducera declined to comment. PJT and Milbank did not respond to requests for comment.
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