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NII Holdings creditors committee appointed, full list

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The U.S. Trustee for the bankruptcy court in Manhattan on Sept. 29 appointed an official creditors’ committee in the Chapter 11 proceedings of NII Holdings, court filings show.

The members of the committee and their contact information are as follows:

 

  • Wilmington Trust, National Association (Attn: Peter Finkel (612) 217-5629)
  • Capital Research and Management Company (Attn: David Daigle (212) 581-5000)
  • Aurelius Capital Management, LP (Attn: Dan Gropper (646) 445-6570)
  • Wilmington Savings Fund Society (Attn: Patrick Healy (302) 888-7420)
  • American Tower do Brasil-Cessao de Infraestructuras LTDA (Attn: Susanne M. Kandel (617) 585-7752)


– Alan Zimmerman

 

 

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Burger King $2.25B 7.5-year high yield bonds (B-/Caa1) price to yield 6%

Burger_King_Logo.svgBurger King completed its $2.25 billion offering of second-lien secured notes via Wells Fargo, J.P. Morgan, and Bank of America to back its acquisition of Tim Hortons. Terms on the B-/Caa1 transaction were finalized at 6%, the wide end of price talk but also wider than initial whispers. As reported, J.P. Morgan and Wells Fargo firmed pricing on Wednesday on the concurrent $6.75 billion term loan at L+350, with a 1% LIBOR floor and a 99 offer price, in line with talk. The financing also includes a $500 million, five-year revolver. The transaction is subject to customary closing conditions, including the approval of Tim Hortons shareholders and receipt of certain antitrust and regulatory approvals in Canada and the U.S. Since 3G Capital already owns roughly 70% of the shares of Burger King and has committed to vote in favor of the combination, no vote is required of Burger King shareholders.

Terms:

Issuer Burger King
Ratings B-/Caa1
Amount $2.25 billion
Issue second lien secured (144A-life)
Coupon 6%
Price 100
Yield 6%
Spread T+369
Maturity April 1, 2022
Call nc3 @par+50% coupon
Trade Sept. 24, 2014
Settle Oct. 8, 2014
Bookrunners WFS/JPM/BAML
Co-Managers Barclays/MS/Scotia/TD/CS/FT/HSBC/RABO
Price talk 5.75-6%
Notes
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Distressed Debt: Three New Additions to LCD’s Restructuring Watchlist

Gun-maker Colt Defense, Arch Coal and high-tech security concern Altegrity recently joined S&P Capital IQ/LCD’s Restructuring Watchlist, which tracks companies with recent credit defaults or downgrades into junk territory, issuers with debt trading at deeply distressed levels, as well as those that have recently hired restructuring advisers or entered into creditor negotiations.

Colt Defense, the 160 year-old gun manufacturing icon, joined the list as its bonds fell eight points last week after the company missed Street expectations for second-quarter results, according to LCD’s Matt Fuller. Management cited lower commercial and law enforcement rifle sales, as well as lower sales to the U.S. government. In the second-quarter report Colt said that, if not for an amendment, it would have been in violation of covenants as of June 29, and warned it may also be in default on a term loan at the end of the year.

Arch Coal joined the Watchlist last week as it saw its bonds fall more than four points, to a record low near 60, writes LCD’s Rachelle Kakouris. This followed a report by Nomura cautioning that fundamentals for the U.S. thermal coal market could deteriorate in 2015. The Nomura report was particularly bearish on Powder River Basin coal producers, of which Arch is second-largest.  (Of all those cited in the Nomura report, the hardest hit was Walter Energy, whose debt dropped nearly six points and whose name has already been on the Watchlist for weeks.)

Altegrity provides information, security, training, investigations, analytics, and technology services to governmental and commercial clients. It will be providing less of that in the near future, however, with the announcement that it has lost two government contracts, according to Kakouris. This prompted a downgrade of its credit rating by Moody’s, and further prompted a move onto LCD’s Restructuring Watchlist.

Moving off the Watchlist was RAAM Global Energy. Despite troubled times for many energy credits, RAAM managed to clear itself off the list with a leveraged loan deal which refinanced its revolver maturing July 1, 2015.

– Steve Richardson

Contact Marc Auerbach for questions on the Watchlist or LCD Research.

 

 

 

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Trump Taj Mahal unsecured creditor committee appointed; full list, contacts

trumptajThe U.S. Trustee for the bankruptcy court in Wilmington, Del., appointed an unsecured creditors’ committee in the Chapter 11 proceedings of Trump Entertainment Resorts, which as reported owns the Trump Taj Mahal in Atlantic City, N.J., court filings show.

The members of the committee and their contact information are as follows:

  • Thermal Energy Limited Partnership I (Attn: Patrick Towbin, 609-572-7107)
  • Bally Gaming, Inc. (Attn: A.C. Ansani, 702-532-7515)
  • Unite Here Local 54 (Attn: Donna DeCaprio, 609-344-5400 x139)
  • National Retirement Fund (Attn: Richard N. Rust, 401-334-4155)
  • Atlantic City Linen Supply, LLC (Attn: Eric Goldberg, 609-345-5888)
  • South New Jersey Paper Products (Attn: Martin Spector, 856-691-2605)
  • Conner Strong & Buckelew Companies, Inc. (Attn: Heather A. Steinmiller, Esq., 267-702-1366)


– Alan Zimmerman

 

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Energy credits, especially drillers, fall amid downturn

The broad market was under pressure today for a second consecutive session, and energy credits were hit particularly hard amid ongoing capitulation in the sector given falling oil prices over the past three months and lower pay to contractors. Also, concerns around recent sanctions against Russia have impacted certain credits, such as Seadrill Limited. Seadrill Limited 5.625% notes due 2017 shed more than a point yesterday to 99.625 and were off roughly 2.5 points on the week, while Seadrill Limited 6.125% notes due 2020 were showing a net six-point decline on the week, pegged 91.5/92.5, according to sources and trade reports.

Also under pressure in recent days has been Seadrill Partners‘ term loan. Seadrill Partners is a separate entity formed by Seadrill Limited to own, operate, and acquire offshore-drilling rigs under long-term contracts. Seadrill Partners’ customers are ExxonMobil, Tullow Oil, BP, and Chevron. Seadrill Partners term debt due 2021 (L+300, 1% LIBOR floor) slumped to a 94.75/95.75 market by this afternoon, which compares with a 96.5/97.25 context on Friday, according to sources.

Elsewhere in drillers, Hercules Offshore 6.75% notes due 2022 were wrapped around 80 today, versus 86/87 going out last week, whileParagon Offshore 7.25% notes due 2024 slipped two points, to 83.5/84.5, for a net 5.5-point decline on the week, sources say.

Other names under pressure included Ocean Rig term debt due 2021 (L+450, 1% floor), which had cooled to a 97.25/97.75 market earlier today, from 98.25/99 on Friday, and Pacific Drilling term debt due 2018 (L+350, 1% floor), which was quoted in a wide 95.5/97.5 market earlier today, down from a level at 97/98 on Friday.

In the E&P segment, Samson 9.75% notes due 2020 were down at 92/93 this afternoon, from trades at 96.5 yesterday and 99 earlier in the month, according to sources. Jupiter Resources 8.5% notes due 2022 traded at 94.5, from 96.5 last week and 95.8 at offer two weeks ago, and Chesapeake Energy 4.875% notes due 2022 changed hands at 102.25, versus 103 yesterday, trade data show. – Matt Fuller/Kerry Kantin

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RSP Permian high yield bonds (B-/B3) price to yield 6.625%

rspRSP Permian this afternoon completed its debut offering of senior notes via Barclays, RBC, J.P. Morgan, and UBS. Terms were finalized at the tight end of guidance, along with a $50 million upsize. Proceeds will be used to repay amounts drawn under the revolving credit facility, with the balance used for general corporate purposes. Dallas, Texas-based RSP Permian is an independent oil and natural gas company focused on the Permian Basin of West Texas. The company trades on the NYSE under the symbol RSPP with an approximate market capitalization of $2 billion. Terms:

Issuer RSP Permian
Ratings B-/B3
Amount $500 million
Issue senior (144A)
Coupon 6.625%
Price 100
Yield 6.625%
Spread T+423
Maturity Oct. 1, 2022
Call nc3 @par+75% coupon
Trade Sept. 23, 2014
Settle Sept. 26, 2014 (T+3)
Bookrunners Barc/RBC/JPM/UBS
Co-Managers ABN/BOSC/Citi/Comerica/USB
Price talk 6.75% area
Notes Upsized by $50 million; first call at par +75% coupon.
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Walter Energy flips PIK-toggle switch on 11% high yield bonds; debt hits fresh lows

walter energy Walter Energy bonds hit fresh lows today after the company told investors that it plans to flip the switch and pay half of the Oct. 1 interest due on its PIK toggle bonds with additional securities instead of cash. The 11% second-lien PIK toggle notes due 2020 slumped around three points to a new low of 48/50, according to sources.

The uniquely structured 11%/12% partial-PIK toggle bond issue offers the issuer the choice to pay 100% in cash; at 50/50% cash/PIK; or at 75/25% cash PIK.

The company said in a filing late yesterday that it has elected the 50/50 option, and said the same will apply for the April 1 coupon, despite assurances from CEO Walter J. Scheller III during its quarterly earnings call in July that there were “no liquidity concerns in our company at this point.”

Walter Energy – which according to Nomura analysts has been burning cash at a rate of approximately $170 million a year – will save approximately $10.5 million by exercising this option.

Elsewhere in the capital structure, the company’s covenant-lite B term loan due 2018 (L+625, 1% LIBOR floor) slipped one point, to 89.5/90.5, for a net three-point loss week over week, while first-lien 9.5% notes due 2019 followed the same tack, to 90.25/91.25, according to sources. In unsecureds, the 9.875% notes due 2020 and 8.5% notes due 2021 tumbled roughly four points, to the high-20s, for an approximate net 11-point decline on the week, sources noted.

As reported, bonds backing Walter Energy initially hit a record low last week as concerns continued to mount over the company’s significant debt load and worsening fundamentals in the U.S. thermal coal market. (See “Arch Coal, Walter Energy fall to record lows on coal demand warning,” LCD News, Sept. 18, 2014).

Standard & Poor’s, which rates Walter Energy CCC+ with negative outlook, in its most recent rating report said it believes that the company’s debt burden is “unsustainable, adding that they view Walter Energy’s liquidity as “less than adequate.”

Moody’s rates the company Caa2 with stable outlook.

NYSE-listed Walter Energy produces metallurgical coal for the global steel industry, and also provides steam coal and industrial coal, anthracite, metallurgical coke, and coal-bed methane gas. The company trades under the symbol WLT, with an approximate market capitalization of $188 million. – Rachelle Kakouris

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Burger King eyes 5.75-6% pricing on $2.25B high yield bond offering

Price guidance on Burger King‘s $2.25 billion offering of 7.5-year (non-call three) senior notes is 5.75-6%. Books close at midday tomorrow, and pricing is expected late Wednesday or early Thursday via bookrunners Wells Fargo, J.P. Morgan, and Bank of America.

Proceeds back the restaurant chain’s acquisition of Tim Hortons.

As reported ($), Burger King last week launched the concurrent $7.25 billion secured credit facility. The deal includes a $500 million, five-year revolver and a $6.75 billion, seven-year covenant-lite B term loan, which is talked at L+350, with a 1% LIBOR floor, offered at 99-99.5. The term loan would include six months of 101 soft call protection. At current talk, the term loan would yield 4.67-4.76% to maturity.

S&P has weighed in with a B+ corporate rating and assigned a B- rating to the notes, along with a 6 recovery rating. The notes are 144A-for-life, with proceeds being used for the acquisition of Tim Hortons, and to partially fund the repayment of any and all existing debt at Tim Hortons and Burger King.

The transaction is subject to customary closing conditions, including approval of Tim Hortons shareholders and receipt of certain antitrust and regulatory approvals in Canada and the U.S. Since 3G Capital already owns roughly 70% of the shares of Burger King and has committed to vote in favour of the combination, no vote is required of Burger King shareholders – Matt Fuller

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SFX Entertainment places add-on to 9.625% notes at par; terms

SFX Entertainment this afternoon completed its add-on to its 9.625% second-lien notes due 2019 via bookrunners Barclays, Deutsche Bank, Jefferies, and UBS. Terms were finalized at the midpoint of talk, after a $15 million increase. The original $220 million deal priced in January and included a special call provision through the first call date at 103% of par, for up to 10% annually. Proceeds from today’s return to market support general corporate purposes, including repayment of $20 million outstanding under a revolving credit line, sources said. Terms:

Issuer SFX Entertainment
Ratings B-/Caa1
Amount $65 million
Issue senior add-on (144A-life)
Coupon 9.625%
Price 100
Yield 9.617%
Spread T+789
Maturity Feb. 1, 2019
Call nc1.5 @par+75% coupon
Trade Sept. 18, 2014
Settle Sept. 24, 2014 (t+4)
Bookrunners Barc/DB/Jeff/UBS
Price talk 100
Notes Special call through first call date at 103% of par, for up to 10% annually, upsized by $15 million; total now $285 million; original $220 million priced in January 2014 @ par

This story first appeared on www.lcdcomps.com, LCD’s subscription site offering complete news, analysis and data covering the global leveraged loan and high yield bond markets. You can learn more about LCD here