DEBTWIRE'S RESTRUCTURING ROULETTE TABLE - AN ACURIS COMPANY - PARR GLOBAL
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An Acuris Company March 2020 Debtwire’s Restructuring Roulette Table Debtwire.com
An Acuris Company OVERVIEW Considering recent market volatility, recessionary concerns and risk repricing due to COVID-19, we have TABLE OF CONTENTS: decided to bring back our Restructuring Roulette Table to update subscribers on the status of issuers with Restructuring Roulette increased risk of near-term credit events. Debtwire’s Restructuring Roulette Table highlights the trigger points of Table…………..………………...........3 borrowers that could lead to such a near term event, including upcoming coupon payments, distressed exchange RESEARCH — NORTH AMERICA deadlines, debt maturities, and borrowing base redeterminations or other developments that could lead to a default. As of this report the issuer count stands at 42. Tim Hynes Head of North American Research 212.574.7878 Tim.Hynes@acuris.com Larry Feldman Credit Analyst 646.378.3105 Larry Feldman@acuris.com Rong Ren, CFA Credit Analyst 646.412.5318 Rong.Ren@acuris.com Seth Crystall Senior Analyst 646.378.3105 Seth.Crystall@acuris.com
An Acuris Company Debtwire North America Research - Restructuring Roulette Table Upcoming Trigger Issuer Sector Recent Developments Trigger Event Net Leverage at Face Dates USD 322m in Unsecured Bondholder • Drew down its Revolving Credit Facility Coupon Due Frontier Communications Telecommunications 16-Mar-20 4.9x • In discussions with creditors about various restructuring options (Unsecured notes are trading around mid- 30s) • In default since 2Q19 RSA Forbearance American Addiction Centers Medical 20-Mar-20 24.6x • Unable to recapitalize - Chapter 11 on deck Expires Bankruptcy Plan EP Energy Energy • Commodity price collapse threatens bankruptcy plan effectiveness 23-Mar-20 7.8x Effectiveness • Failed to get bondholders on board with a proposed exchange offer that first launched in November, and after five extensions now has a 30 March participation deadline Exchange Offer Unit Corp Energy • Unit selected Opportune as operational advisor to help turn around its 30-Mar-20 2.8x Expires business • Holders of 6.625% subordinated notes due 2021 hired Greenhill as they look to go restricted soon • Collapse of commodity prices could threaten distressed exchange and Exchange Offer California Resources Energy 31-Mar-20 4.3x company output Terminated • Hired Guggenheim Partners and Kirkland & Ellis Forbearance Hornbeck Offshore Energy Services 31-Mar-20 N/A • Failed to achieve percentage threshold for exchange Agreement Expires •Hired restructuring advisors McDermott Will & Emery, and financial Secured Net Leverage Quorum Health Medical advisor Alvarez & Marsal 31-Mar-20 4.49x at 30 Sept 2019 Ratio Drops to 4.5x •In discussions with KKR about recapitalization • Missed coupon payment on 2022 notes in Dec 2019 4.25x as of 30 Sept Tapstone Energy Energy 31-Mar-20 Restructuring • Facing commodity price collapse 2019 • Facing potential restructuring via Chapter 11 Petroquest Energy 31-Mar-20 Restructuring N/A • Affected by lower commodity prices Forbearance • Missed interest payment due 18 February 2020 Agreement Expires • Entered into a forbearance agreement with its first lien lenders following (First lien term loan Phillips Pet Food & Supplies Consumer the missing interest payment 31-Mar-20 N/A trading around 38 and • Announced on 25 February 2020 that it has entered into a merger second lien term loan agreement with Animal Supply Company trading at 7.5) • Reached an agreement with lenders to execute a sale of the company, Potential Bankruptcy Akorn Pharmaceuticals potentially via Chapter 11 31-Mar-20 N/A Filing • Announced it does not expect to have sufficient cash flow to repay convert GNC Holdings Consumer: Retail notes or tranche B-2 term loan 31-Mar-20 Going Concern 4.7x • Expressed doubt regarding its ability to continue as a going concern • Debt trading at distressed levels Seadrill Energy Services 31-Mar-20 Looming Maturities 29.9x • Affected by lower commodity prices 2020 Convert Notes • Hired advisors for liability management Whiting Petroleum Energy 1-Apr-20 Maturity 2.9x • Unsecured notes trading in the low 20s (Trading around 74) • Pitching a restructuring plan that would cut one third of its outstanding Revolver Maturity Longview Power Electrical Power 13-Apr-20 N/A debt (Trading around 27) Pyxus Has USD 900m • Seeking an advisor to deal with over-leveraged balance sheet Debt Wall Due in 2021 Pyxus International Tobacco 15-Apr-20 17.9x • Current environment might be difficult to refi debt (First Lien 8.5% notes trade at 90) • Bondholder group is pushing back on distressed exchange proposal Proposed Exchange Sherritt International Mining 30-Apr-20 14.0x • Highly levered issuer Effective Date • Hired Evercore to explore strategic options for capital structure Forbearance LSC Communications Manufacturing: Other 14-May-20 8.8x • Ad Hoc Group of bondholders has formed Agreement Expires
An Acuris Company • Extended forbearance Agreement through 29 May 2020 • Reduce revolver size to USD 25m from USD 32.5 Forbearance Core Molding Technology Industrial Products 29-May-20 12.8x • Hired Huron Consulting Services as a financial advisor to assist the Agreement Expires company to evaluate the strategic alternatives • Opco bondholders hired Lazard and Milbank as advisors to discuss the possibility of a swap of its Holdco notes into a senior position at Opco level ; 2020 Unsecured Notes while the company tapped Moelis and Squire Patton Boggs as advisors Ferrellgas Partners Energy 15-Jun-20 Maturity 9.3x • Issued going concern warning in 10-Q (Trading around 24) • Not in compliance with the fixed charge ratio contained in the senior unsecured notes due in June 2020 • Upcoming term loan maturity Apogee Enterprises Construction 23-Jun-20 Term Loan Maturity 2.2x • May face cyclical risks • Working with Oppenheimer to address near term maturities ABL and Term Loan Latshaw Drilling Energy Jul-20 N/A • Faces adverse impact from reduction in oil and gas well drilling Maturity Industrial Products and • Examining refinancing plan with Stifel, Goldman Sachs, Macquarie and RBC TNT Crane Aug-20 Revolver Maturity 7.3x Services • High levered, cyclical business • Debt trading at distressed levels 2020 Notes Mature Noble Corp Energy 1-Aug-20 7.8x • Affected by lower commodity prices (Trading around 87) • Commodity price collapse impacts company production 2020 Notes Mature Chesapeake Energy Energy 15-Aug-20 3.4x • Debt trading at distressed levels (Trading around 49) • S&P downgraded the company's issuer credit rating to CCC- from CCC due 2020 Unsecured Notes to the USD 442m debt maturities over the next 6 months Omnimax Holdings Construction 15-Aug-20 Maturity N/A • S&P believes a default, distressed exchange or restructuring appears (Trading around 72) inevitable in the next 6 month Springing Maturity of Martin Midstream Energy •Seeking to refi unsecured notes 19-Aug-20 Revolver if unsecured 4.6x notes not refinanced • Sold two PJM power plants to EIG Global Energy Partners and the Carlyle Term Loans Maturities Group Panda Liberty Electrical Power 21-Aug-20 N/A • EIG and Carlyle are lining up a refinancing of senior debt (Trading around 97) • EIG and Carlyle last week made an equity cure of approximately USD 5m • Facing parent-child well issues, as well as reduced commodity prices Templar Energy Energy Sep-20 Revolver Maturity N/A • Upcoming credit facility maturity • Has asked lenders to get restricted to discuss extending its near-term Term Loan Maturity Progrexion Services (Other) 29-Sep-20 N/A maturities (Trading around 52) • S&P downgraded the company's first lien loan rating to CCC- from B- and second lien loan rating to C from CCC • S&P expects USD 20m to USD 25m liquidity deficits over the next 12 months; S&P finds it challenging to refinance the company's USD 50m Revolver Maturity Alert 360 Services (Other) 6-Oct-20 N/A revolver which is due in October 2020. (Trading around 49) • Working with Kirkland & Ellis and Houlihan Lockey to evaluate options for upcoming maturities • An Ad Hoc group of lenders has organized with Gibson Dunn and Greenhill • Working with Evercore on capital structure review, upcoming maturities Super-Priority Facility Vine Oil & Gas Energy Nov-20 4.7x • Affected by lower commodity prices Matures • A group of Sandy Creek lenders has been consulting with legal counsel Stroock & Stroock as investors brace for the borrower’s entire debt stack to Term Loan and Sandy Creek Electrical Power mature due in 2020 9-Nov-20 Revolver Maturities 13x • S&P projects the company's liquidity is 'less than adequate' due to the (Trading around 85) upcoming maturity of the project's term loan • Working with advisors Moelis and Milbank Inmarsat Payment Ligado Telecommunications 27-Nov-20 N/A • Received amendment to put off restructuring (USD 136m) Resumes • Working with Houlihan Lokey and Akin Gump for assistance negotiating a restructuring plan leading up to its December term loan maturity Term Loan Maturity New Millennium Medical • Group of lenders are working with the company on an out-of-court 21-Dec-20 19x (Trading around 45) restructuring plan that could result in the term loan lenders taking over the company’s equity • Retained Houlihan Lokey as financial advisor • The company's sponsor, ArchLight, pulled a USD 335m refinancing loan Term Loan Maturity Chief Power Finance Electrical Power deal 31-Dec-20 N/A (Trading around 37) • Potential for a breach of 1.1x debt service ratio within the next a few months
An Acuris Company • Highly leveraged capital structure Valaris (Ensco/Rowan) Energy - Offshore Drilling • Weak 4Q19 earnings; weak economies; low oil price; and expected cash 31-Dec-20 Possible Restructuring 39.0x burn • Postponed secured bond offering due to market volatility Term Loan B Maturity Del Monte Foods¹ Consumer: Foods • Faces potential restructuring or bankruptcy in the next twelve months per Feb-21 30.0x (Trading around 93) S&P • Highly leverage; 2020 cash burn expected; debt trading at distressed FTS International Energy levels 16-Apr-21 Term Loan Maturity 24.8x • Affected by lower commodity prices • Ad Hoc group of crossholders proposing liquidity injection subject to Term Loan Maturity Skillsoft Services (Other) subordination of first lien holdings 28-Apr-21 11.0x (Trading around 68) • Highly levered issuer • Disclosed a disappointing preliminary 4Q19 earnings and issued a weaker- than-expected FY20 guidance • Delayed 10-k filing due to provide more information about its expectations for 2020 and refinancing plans 2021 Unsecured Notes • Investors raised questions about the company's ability to refinance the Tupperware Consumer 1-Jun-21 Maturity 3.1x USD 600m bond due 2020 (Trading around 61) • Became a fallen angel as S&P downgraded the company bond rating by 4 notched to high yield • Prospective leverage ratio relief secured through Credit Agreement amendment • Commodity price collapse impacts EBITDAX 2021 Notes Mature Antero Resources Energy 1-Nov-21 4.7x • Unsecured notes trading at distressed levels (Trading around 62) Sources: Debtwire, Company Filings, MarketAxess, FINRA 1 Debtwire estimate 5
An Acuris Company Debtwire is an Acuris company Debtwire, an Acuris company, is the • Follow corporate debt situations as EMEA Americas Asia leading provider of expert news, data and they unfold analysis on global leveraged credit. Our 10 Queen Street Place 1501 Broadway Suite 1602-6 end-to-end coverage goes behind the • Find mandate opportunities in stressed/ distressed/restructuring London 8th Floor Grand Millennium Plaza scenes from primary issuance to the first situations, ahead of the market EC4R 1BE New York 181 Queen’s Road sign of stress through restructuring and beyond. • Get real-time news on market-moving United Kingdom NY 10036 USA Central Hong Kong events sent to your mobile or email With global breadth and local depth, +44 203 741 1000 +1 212 500 7537 + 612 9002 3131 Debtwire's award-winning editorial, • Get the full story on restructurings sales@acuris.com sales.us@acuris.com sales.asia@acuris.com research and legal analyst teams produce and the players involved original content that helps subscribers • Understand how regulatory make informed decisions. developments are affecting asset- backed securities As pioneers in the market, subscribers trust Debtwire for comprehensive • Capture early stage primary coverage across geographies, companies opportunities and stay on top of the and asset classes. leveraged market Disclaimer We have obtained the information provided in this report in good faith from sources that we consider to be reliable, but we do not independently verify the information. The information is not intended to provide tax, legal or investment advice. We shall not be liable for any mistakes, errors, inaccuracies or omissions in, or incompleteness of, any information contained in this report. All such liability is excluded to the fullest extent permitted by law. Data has been derived from company reports, press releases, presentations and Debtwire intelligence. Debtwire.com
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