Reorg Blog

Each episode of Reorg's weekly EMEA Core Credit podcast series features detailed discussion on issues and companies across the credit lifecycle. This week’s podcast includes discussion of: -U.K.-based casual dining chain Pizza Express’ waterfall model;-U.K. value retail group Matalan, its strategic sales process, the terms of its debt recapitalization;The company said on Sept. 26 that it has agreed with a majority of its first lien secured noteholders on the key terms of a comprehensive recapitalization of its debt, and the board has initiated a strategic sales process.-Luxembourg-headquartered metals and mining group Metalcorp facing default;Metalcorp’s 8.5% notes due 2026 are quoted...

In this special edition of the Reorg Americas Core Credit Podcast, the Loan Syndications and Trading Association’s (LSTA) Meredith Coffey, also a member of the Federal Reserve’s Alternative Reference Rates Committee, discusses the transition to SOFR with Reorg’s head of primary, James Holloway. The conversation comes as about $4 trillion of leveraged loans are due to transition from Libor by the end of June 2023. Reorg’s Sept. 16 article highlighted the efforts by some lenders to push back against the efforts of borrowers to switch to SOFR without according them a credit spread adjustment. Listen to the full podcast: https://soundcloud.com/reorg-radio/americas-special-edition-oct-4 Reorg is...

Since the beginning of this year, close to 200 middle-market companies with under $500 million in liabilities have filed for chapter 11, according to Reorg’s First Day database. The pace of filings picked up toward the third quarter as macroeconomic headwinds, notably inflation, rising interest rates and rising energy costs, worsened, signaling the onset of a recession. Isagenix, United Road Services and Fly Leasing are recent examples of businesses that either sought or are seeking forms of relief from their creditors; however, companies that fail in their talks with lenders will eventually be forced to join the list of chapter...

Americas Covenants by Reorg's review of coverage for the week ended Friday, Sept. 16, is below. This week, Americas Covenants by Reorg discussed the new secured notes issued in connection with the leveraged buyout of Citrix Systems and analyzed the aggressive restrictive payments buildup basket based on 100% of cumulative EBITDA. We also discussed NortonLifeLock’s credit agreement entered in connection with the acquisition of Avast. Although the agreement does not provide the company with excessive flexibility, it does include a mechanic that expands borrowers’ ability to carry forward unused annual capacities to the mandatory prepayment provisions. We also analyzed StoneMor’s related party transactions with...

Reorg's First Day team provides timely alerts and expert analysis of new chapter 11 cases. Each Wednesday, the First Day team publishes a weekly wrap of high-level analysis on chapter 11 filing trends. The following extract is from the weekly wrap dated September 2, 2022 -- This week is the sixth consecutive week to include a billion-dollar chapter 11 filing - this time from automotive and LED lighting manufacturer Lumileds, bringing the year-to-date count of chapter 11s involving at least $1 billion in liabilities to 15, including nine in Q3, with nearly a full month remaining in the quarter. August concluded...