FullBeauty Brands
UPDATE 1: FULLBEAUTY Second Liens Working with Houlihan Lokey, Paul Weiss
Fri 09/14/2018 15:51 PM
UPDATE 1: 3:51 p.m. ET 9/14/2018: A group of FULLBEAUTY Brands’ second lien lenders is working with Houlihan Lokey as financial advisor and Paul Weiss as legal advisor, as the company continues to explore liability management strategies, sources said.
As previously reported, a group of lenders primarily holding the first lien term loan had engaged Davis Polk while a separate group had retained Milbank Tweed and Ducera Partners. The Davis Polk group has merged with the Milbank and Ducera group, sources said.
The TLB was quoted today at 29/31, while the second lien TL was quoted today at 8/13, according to a trading desk.
PJT Partners and Kirkland & Ellis are advising the company in its efforts to capture discounts in the debt, sources said. PJT’s role with the company evolved from an initial mandate by sponsor Apax Partners.
Apax and Paul Weiss declined to comment. Davis Polk, Houlihan, PJT and Kirkland did not respond to requests for comment.
Original Story 11:02 a.m. UTC on Aug. 14, 2018
FULLBEAUTY Sponsor Apax Partners Working With PJT Partners to Explore Discounted Debt Buybacks
FULLBEAUTY Brands’ financial sponsor Apax Partners is working with PJT Partners as financial advisor to explore debt buy back options, according to sources. The retention comes as the online plus-size apparel retailer’s debt, which starts coming due in 2020, has dipped to deeply distressed levels. The company’s term loan B is quoted today at 39/41, while the second lien term loan is quoted in the 11/16 context, according to a trading desk.
As previously reported, Davis Polk is working with a group of lenders primarily holding the company’s term loan B due in 2022 and had requested a meeting with management to gain insight into the company’s performance. Davis Polk had also requested a collateral review and perfection analysis of the company’s $75 million first-in, last-out (FILO) asset-based loan by Cahill Gordon, counsel to administrative agent JP Morgan.
A separate group of term lenders is working with Ducera Partners and Milbank Tweed, the sources said.
FULLBEAUTY reported for the first quarter ended March 31 a 32% year-over-year decline in EBITDA to $17 million from $25 million and a 3.5% decline in revenue to $204 million. The company ended the first quarter with $86 million of liquidity, split between $60 million of availability under its undrawn $100 million asset-based revolver due in 2020 and $26 million of cash.
Acquired by Apax in a 2015 leveraged buyout, FULLBEAUTY has faced competition from new entrants and from Amazon and department stores, such as Kohl's, Walmart and J.C. Penney, which have refocused on the plus-size demographic.
Apax and Ducera declined to comment. PJT and Milbank did not respond to requests for comment.
As previously reported, a group of lenders primarily holding the first lien term loan had engaged Davis Polk while a separate group had retained Milbank Tweed and Ducera Partners. The Davis Polk group has merged with the Milbank and Ducera group, sources said.
The TLB was quoted today at 29/31, while the second lien TL was quoted today at 8/13, according to a trading desk.
PJT Partners and Kirkland & Ellis are advising the company in its efforts to capture discounts in the debt, sources said. PJT’s role with the company evolved from an initial mandate by sponsor Apax Partners.
Apax and Paul Weiss declined to comment. Davis Polk, Houlihan, PJT and Kirkland did not respond to requests for comment.
Original Story 11:02 a.m. UTC on Aug. 14, 2018
FULLBEAUTY Sponsor Apax Partners Working With PJT Partners to Explore Discounted Debt Buybacks
FULLBEAUTY Brands’ financial sponsor Apax Partners is working with PJT Partners as financial advisor to explore debt buy back options, according to sources. The retention comes as the online plus-size apparel retailer’s debt, which starts coming due in 2020, has dipped to deeply distressed levels. The company’s term loan B is quoted today at 39/41, while the second lien term loan is quoted in the 11/16 context, according to a trading desk.
As previously reported, Davis Polk is working with a group of lenders primarily holding the company’s term loan B due in 2022 and had requested a meeting with management to gain insight into the company’s performance. Davis Polk had also requested a collateral review and perfection analysis of the company’s $75 million first-in, last-out (FILO) asset-based loan by Cahill Gordon, counsel to administrative agent JP Morgan.
A separate group of term lenders is working with Ducera Partners and Milbank Tweed, the sources said.
FULLBEAUTY reported for the first quarter ended March 31 a 32% year-over-year decline in EBITDA to $17 million from $25 million and a 3.5% decline in revenue to $204 million. The company ended the first quarter with $86 million of liquidity, split between $60 million of availability under its undrawn $100 million asset-based revolver due in 2020 and $26 million of cash.
Acquired by Apax in a 2015 leveraged buyout, FULLBEAUTY has faced competition from new entrants and from Amazon and department stores, such as Kohl's, Walmart and J.C. Penney, which have refocused on the plus-size demographic.
Apax and Ducera declined to comment. PJT and Milbank did not respond to requests for comment.
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