Reorg Blog

Written by Kent Collier, Founder & CEO || Today marks the 100th edition of Reorg on the Record. We started publishing this weekly digest in the months leading up to the onset of the pandemic. A lot has happened in those two years and candidly, at least to me, it feels like a decade. The environment today feels quite different from March, April and May of 2020. Cases such as Whiting Petroleum, J.Crew, Avianca and many others dominated Reorg’s docket feed and no one knew what a meme stock was (gentle reminder: Gamestop was going through a proxy battle at...

Written by Adelene Lee, Managing Editor, Americas Core Credit, Middle Market & Municipals || As the Fed signaled that it is planning to increase interest rates at its March meeting, borrowers flocked to the capital markets in January to secure funding at rates that remain historically low. Given the direction interest rates are taking, investors are showing a preference for floating-rate instruments including leveraged loans, which saw numerous multi-billion dollar deals to support leveraged buyouts, while turning relatively more cautious on fixed-coupon, longer-duration high yield bonds. Reorg’s Americas team has begun to expand its focus to delve into selective sub-investment...

Primary Muni Deals Going Day-to-Day Reflect Second Week of Muni Outflows, Cautious Investor Sentiment The last week of January 2022 had $1.15 billion scheduled to price with the largest deals coming from high-yield bond issuers. But market technicals and macros headwinds beached a few of them, said market sources.  The largest of the week’s primary offerings was $419 million from the New Hope Cultural Education Facilities Finance Corp. on behalf of the Dwyer Workforce Development Portfolio Project, which initially launched in December 2021. A $113 million offering from the California Statewide Communities Development Authority, or CSCDA, for an essential housing...

Written by Julie Miecamp, Managing Editor, Europe || For junk-rated debt investors the new year has started with a flurry of high-yield bonds and leveraged loan deals from repeat issuers. As market conditions in Europe remain benign due to government and central bank support, investors have been buying into well-known single B credits. Distressed debt investors have a dearth of new opportunities to consider, although some have been busy with existing negotiations. Creditors rejected a draft plan submitted by Spanish real estate servicing company Haya Real Estate before Christmas. The deal aimed at tackling the company’s 2022 maturities. Debtholders worried that...

Written by Julian Bulaon, Legal Analyst, Americas Covenants || To kick off the new year, Reorg’s Americas team has prepared in-depth analyses on a number of highly topical names, including PBF Energy, SmileDirectClub and Synaptics Inc. Specifically, we discuss how regulatory considerations and drafting nuances in debt documents may expand each company’s ability to address current and future liabilities. In PBF, we quantified the impact on the company’s financials from recent proposed renewable fuel volume targets issued by the Environmental Protection Agency. We also looked at SmileDirectClub’s cash burn and concluded that the company could seek to address its shortening liquidity runway...