Category: 2019

NOVA shells out USD 1bn damages payment, bonds soften on weak earnings

NOVA Chemicals has tapped its liquidity to fund a USD 1.08bn damages payment while it awaits the results of its appeal against the litigation, according to three sources following the situation. The payment, to Dow Chemicals, came after NOVA reported disappointing 3Q19 earnings, the sources said. In September, the Court of the Queen’s Bench in Alberta, Canada signed…

Read more NOVA shells out USD 1bn damages payment, bonds soften on weak earnings

Maxar pitches near-term refi on 2021 lift-off, but interim cash burn worries some buysiders — Deal Preview

Maxar Technologies is focusing its near-term refinancing pitch on a new fleet of satellites that it says should catapult the cash-burning company to positive free cash flow within the next two years, according to five sources following the deal. The new capacity should lead to a more sustainable credit profile in time. But Maxar’s capex spend…

Read more Maxar pitches near-term refi on 2021 lift-off, but interim cash burn worries some buysiders — Deal Preview

Party City cap structure buckles as October sales highlight scary Halloween

Party City’s capital structure and equity plummeted today as the company reported a steep decline in earnings for 3Q19 ended 30 September and a weak outlook for the fourth quarter, according to four sources following the company. The company attributed its 71% year-over-year quarterly EBITDA dive to macro dynamics like a global helium shortage and…

Read more Party City cap structure buckles as October sales highlight scary Halloween

Unit Corp seeks bond exchange on heels of non-deal roadshow; 2020 springing maturity looms large

Unit Corp’s announcement yesterday that it plans to launch an exchange offer for its subordinated notes marks a turn in the company’s strategy as oil & gas valuations sink and access to capital markets for levered E&Ps becomes less than assured. If the company is unable to strike a deal with holders to exchange the…

Read more Unit Corp seeks bond exchange on heels of non-deal roadshow; 2020 springing maturity looms large

Mediaocean pulls dividend recap loan after lenders balk at portability request

Mediaocean has scrapped efforts to raise a new term loan that would have enabled its owner, Vista Equity Partners, to recoup its investment in the company, according to five sources familiar with the situation. The USD 693m offering, which was talked at Libor+ 375bps with a 99 OID, included portability language, the sources said. An orderbook had…

Read more Mediaocean pulls dividend recap loan after lenders balk at portability request

Grubhub bonds slump on disappointing EBITDA guidance, imperiled free cash flow

Grubhub’s capital structure plummeted after the company slashed 4Q19 guidance, raising concerns over its ability to stay competitive in a saturated market and generate free cash flow, according to two buyside and one sellside source following the company. As part of its 3Q19 earnings report, the online takeout dining platform guided revenue at USD 315m-USD…

Read more Grubhub bonds slump on disappointing EBITDA guidance, imperiled free cash flow

Wesco pricing drifts wider as buysiders scrutinize Platinum’s proposed Pattonair merger — Deal Preview

Wesco Aircraft has had to widen pricing expectations on the unsecured bonds backing its acquisition by Platinum Equity and subsequent merger with Pattonair, as potential lenders scrutinize the issuer’s highly adjusted financials, according to five sources following the deal. Led by BofA, the company is offering USD 575m of Caa2/CCC+ senior unsecured notes due 2027 and USD…

Read more Wesco pricing drifts wider as buysiders scrutinize Platinum’s proposed Pattonair merger — Deal Preview

FXI pays up for Innocor deal amid risk of mattress softness – Deal Preview

FXI’s proposed bonds price in the risk of an upcoming recession that could wreak havoc on its balance sheet, as the borrower sets off on an acquisition of mattress foam maker Innocor that will increase its exposure to the bedding industry, according to five sources following the deal. The pro forma company will have relatively low leverage…

Read more FXI pays up for Innocor deal amid risk of mattress softness – Deal Preview