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.comAn 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 ExpiresAn 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
monthsAn 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
5An Acuris Company
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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
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