An ad hoc group of holders of TPC Group Inc.’s $930 million 10.5% secured notes due 2024 has organized with Stroock as legal advisor, according to sources, as the butadiene producer
considers refinancing its $70 million L+700 bps term loan due August 2021 funded by Apollo Global Management with debt senior to the 2024 notes. The loan funded by Apollo is pari passu with the 2024 notes, as reported.
CEO Ed Dineen said on the company’s third-quarter earnings call last month that if insurance proceeds related to the
explosion at its Port Neches plant were paid out in the “normal course” and alongside a “lifetime replacement and extension” of the term loan, TPC would be exposed to “unacceptable” liquidity risk. Management said that under the current indentures, the loan could be upsized in the range of “$30 to $80 million,” with the company forecasting somewhere at the “lower end” of that range in its current liquidity estimate. TPC
incurred the term loan in February amid uncertainties regarding the timing of insurance proceeds.
The notes last traded in size on Dec. 2 at 77.2, according to TRACE.
TPC Group and Stroock did not immediately respond to requests for comment after business hours.
--Millie Dent, Harvard Zhang