Service King made a USD 14.8m coupon payment due yesterday (1 October) to holders of its unsecured bonds, according to two sources following the situation. Clearlake Capital owns a significant majority of the collision center operator’s outstanding bonds, one of the sources and two other sources added.
As of 30 June, Service King had USD 111m of cash on its balance sheet – after fully drawing the remaining availability on its USD 100m revolver during 1Q – but only about USD 33m of that is unencumbered cash.
The company provided a cash flow update earlier this week detailing improving trends over the last few months, as reported. The Blackstone and Carlyle-owned company’s monthly cash burn contracted to USD 0.2m in August, from a USD 6.8m burn in July and a USD 10.6m burn in June.
In April, the company initially withheld the interest payment before ultimately paying it within the 30-day grace period.
The USD 375m 7.875% senior unsecured notes due 2022 traded in size today at 82.5, in line with recent levels and up from 78.25 on the heels of the August earnings report, according to MarketAxess.
Its USD 600m Libor+ 275bps (1% floor) first lien term loan due August 2021 is quoted today in the 93.833/96.042 context, up from quotes at 92.542/94.736 earlier this week, according to Markit. The company also has a fully tapped USD 100m revolver due August 2021.
Service King and Clearlake did not respond to requests for comment. Blackstone and Carlyle did not respond to requests for comment.