Industry continues to grapple with chip shortages

Industry continues to grapple with chip shortages

Written by Noor Sehur, Analyst Team Lead || With a quiet primary market amid the earning season, we shifted our focus to secondary situations in Europe, some of which are auto-parts suppliers Adler Pelzer and Standard Profil, German real-estate company Adler Group and Indian-based entertainment company Eros STX. Yields of B- rated senior secured notes of Adler Pelzer and Standard Profil rose to 5.2% and 7.3%, respectively, as the industry continues to grapple with chip shortages and margin pressure from rising raw material costs. (more…)

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Lamb Weston Debt Covenants Analysis – Americas Covenants

Lamb Weston Debt Covenants Analysis – Americas Covenants

After amending both of their credit agreements in August 2021, the Lamb Weston debt covenants have become increasingly more complex. The global producer, distributor and marketer of value-added frozen potato products ended their fiscal year with a 10.5% decrease in their adjusted EBITDA, plus the amendments to their credit agreement increased the revolver from $750 million to $1 billion extending its maturity. Our Americas Covenants experts provided a deep dive analysis into the amendments to the company’s credit agreements as well as how these amendments impact the Lamb Weston debt covenants, financial covenants, collateral and guarantee suspension period, secured debt...

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Municipal Bonds Debt Analysis – August 2021

Municipal Bonds Debt Analysis – August 2021

Below is a recap of our municipal bonds debt analysis from the week ending Aug. 13, 2021. Primary market opportunities exclusive to Reorg’s municipal offering took the top spots this week while core, distressed coverage continued to expand the overall universe. KIPP NYC Public Charter Schools tapped the bond market for $243m in funding to construct two new charter schools in the Bronx and purchase a third. Aggressive demand drove spreads tighter than price talk and the deal priced a week early. Sanctuary LTC LLC waded into the primary market for a new $554m revenue bond that it tried to issue...

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Tahoe Group Bond Default: Bondholders Should Look Beyond Traditional Restructuring

Tahoe Group Bond Default: Bondholders Should Look Beyond Traditional Restructuring

On July 8, after seeking three extensions, Tahoe Group published its response to an inquiry issued by the Shenzhen Stock Exchange in relation to the group’s 2020 annual report. The response provides some answers to the Tahoe Group liquidity and debt situation, but it is unknown whether the public's concern over the unanswered progress of the group’s prospective restructuring can be relieved. Tahoe Group, a Fujian-based PRC property developer, is deeply mired in financial crisis contributed by the PRC policy change. The group’s plan to introduce China Vanke as a white knight has not yet materialized as a result of...

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Carrols Restaurant Group Covenants Analysis

Following their June refinancing, our Americas Covenants experts have updated their tear sheet to provide more color on our Carrols Restaurant Group covenants analysis. The company operated 1027 Burger King restaurants and 65 Popeyes as of July 4, 2021 and after issuing $300M of 5.875% senior unsecured notes they were able to fully repay their $74M outstanding incremental loans. After their refinancing transactions in June, Carrols Restaurant Group’s first lien net leverage ratio fell to 1.36x from approximately 3.40x.  Click through and read our full Carrols Restaurant Group covenants analysis including our conclusions on the company’s liquidity and financial covenants,...

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2021 Chapter 11 Filing Trends from Q1 and Q2

2021 Chapter 11 Filing Trends from Q1 and Q2

Coming off a record-setting year of chapter 11 filings in 2020 as the Covid-19 pandemic swept the globe and affected multiple industries, our First Day team analyzed the 2021 chapter 11 filing trends from Q1 and Q2 in our midyear report. The first half of 2021 trended well below historical averages, with a low point in May. Compared with the busiest second and third quarters of 2020 where consumer discretionary sector cases and, in particular, brick-and-mortar heavy companies, were filing with unprecedented frequency, 2021’s first-half consumer discretionary cases dropped by almost half. Real estate was the only industry to see...

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