Reorg Blog

To analyze and forecast cash flow, you normally need to manually aggregate data points including cash flow from operations, cash flow from investing, and cash flow from financing. These data points are fundamental for both private and public sub-investment grade companies and they may be difficult to find without a proper aggregation tool. Accrual accounting and cash accounting, plus a company’s operations/net sales ratio, free cash flow, and comprehensive free cash flow coverage are all necessary statistics and figures used in determining your ability to analyze and forecast cash flow. Recently, Reorg acquired Aggredium which provides our subscribers with fundamental data on high-yield bonds and leveraged loans through a searchable database. This comprehensive database features high-speed scraping and updating tools used for gathering and publishing changes to loan and bond data.

---

Aggredium’s standardized, aggregated, proprietary data enables subscribers to analyze and forecast cash flow and screen a company’s universe using financial data. Founded in 2017 and acquired by Reorg in 2021, Aggredium was designed and built by experienced international analysts whose shared goal was to deliver accurate financial data combined with state-of-the-art technology and analytics to empower business professionals to make superior investment decisions. The Aggredium calendar, available only to Reorg subscribers, enables users to view upcoming events by working day, as well as click into event details and add them to their own calendar. Another important feature in the Aggredium database that helps users analyze and forecast cash flow is our reported view and standard view. The reported view allows users to access complete data as reported with direct traceable links to all source information whereas the standard view provides users with a unified list of metrics shown in a standardized format with transparent links to each source. To learn more about how to analyze and forecast cash flow with Aggredium download our brochure here and visit our product page here. Also feel free to request a trial here to experience the power of our platform.  

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.

Featuring a discussion on municipal credit trends across the continuing care retirement community industry in the Americas, our municipals experts Patrick Mohan and Seth Brumby will be conducting a webinar on Thursday, July 22 at 11:00a.m. EST. The industry has seen a wide range of outcomes, including Vicar’s Landing’s recent borrowing of $84.3 million in connection with the expansion of its Ponte Vedra Beach community, the chapter 11 filings of The Harborside and The Buckingham, and defaulted credits that are still exploring options like Glen Hope Harbor and American Eagle. 

---

The team will also discuss how Covid-19 has affected the industry, from advanced Medicare payments, to bond covenants, including occupancy rates, days’ cash on hand and debt service coverage ratios. Register here: https://reorg.zoom.us/webinar/register/3716257539343/WN_0IhAuDH7R7Cb8UxcbJ6oig 

On May 14, representatives of Mainland China and Hong Kong signed a record of meeting on mutual recognition of and assistance to bankruptcy/insolvency proceedings between the respective courts, creating a new cooperation protocol for cross-border insolvency. In this webinar, Fergus Saurin of Kirkland & Ellis and Lingqi Wang of Fangda Partners will Reorg's managing editor for onshore China, Shasha Dai, to discuss the new developments and implications for insolvency and bankruptcy law practitioners. Learn more and register here.

Analyzing the new Laredo Petroleum senior notes, our Americas Covenants team takes a deep dive into the company’s low leverage ratio and their inability to incur any additional secured debt. The energy company, which focuses on the acquisition, exploration and development of oil and natural gas properties in the Permian Basin, acquired Sabalo Energy on July 1, 2021 and entered into their sixth amendment to their credit agreement on May 7th.

---

Based on these capital structure changes, our Americas Covenants team came to a few conclusions about the Laredo Petroleum senior notes as well as the company’s cash sweep, financial covenants, annualized EBITDAX, debt and lien payments, restricted payments, investments and note redemptions and their agent clawback provisions. Read our full analysis of the Laredo Petroleum senior notes and other covenant conclusions here: https://reorg.com/new-coverage-despite-low-leverage-ratio-laredo-petroleum-cannot-incur-any-additional-secured-debt/