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...

Read More
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...

Read More
Carrols Restaurant Group Covenants Analysis

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,...

Read More
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...

Read More
Refusal to Sanction Restructuring Processes – Hurricane Energy, Amigo Loans

Refusal to Sanction Restructuring Processes – Hurricane Energy, Amigo Loans

Since our webinar earlier in the year, two key judgements have provided helpful guidance on circumstances where the courts will use their unfettered discretion in the refusal to sanction restructuring processes. Hurricane Energy provided a landmark judgment, being the first time since its introduction, that the court has pushed the refusal to sanction a restructuring plan.  The court rejected the company’s submission as to the “relevant alternative” to the restructuring plan and was unconvinced that the creditors subject to the cross class cram down would have been no worse off under the plan than the relevant alternative.  Even had such conditions been...

Read More
AZEK Company Debt Covenants Analysis – Americas Covenants

AZEK Company Debt Covenants Analysis – Americas Covenants

After completing its IPO in June 2020, the AZEK Company debt covenants and capital structure have become more complicated. The company’s gross profit increased 23.3% year over year at the end of Q2 2021 and during Q2, AZEK amended both its term loan and ABL facility to decrease pricing. Their springing financial covenants show that they must maintain a fixed charge coverage ratio of at least 1x, plus their debt and lien capacity shows that permissions from their term loans, ABL, and their unsecured debt are making an impact on the company’s leverage ratios.  To read our Americas Covenants team's...

Read More
Thank you for signing up
for Reorg on the Record!