Reorg Blog

On this week’s Americas Core Credit weekly podcast our expert team of covenants analysts, including Richard Barbour and Julian Bulaon, discuss Iconix Brands going private acquisition in detail.  Iconix Brands’ recently announced going private acquisition by Lancer Capital and the change of control implications under their debt docs is being structured as a two step merger. In broad strokes, the purchaser commences a tender offer to acquire all outstanding shares of Iconix’s common stock, and in this case that’s for $3.15 per share in cash. Assuming that the shares that are tendered in the offer and those held by the...

Staggering amounts of maturing debt owed by Chinese borrowers are common headlines for generalist newswires. But those numbers do not include off-balance-sheet borrowings and other liabilities, which increasingly exasperate investors, and increase volatility in Chinese issuers’ bonds. Yuzhou Group recently sounded out market interest in a third private bond deal in recent months. As Reorg revealed, the last private issue - a $100 million 6% 361-day issue priced at 98.12% in September - was marketed with an ISIN code and a private page on Bloomberg. The issuer was a BVI-incorporated SPV. These off-balance sheet deals create volatility in bond prices - despite company...

Analyzing the Red Star Macalline Group debt, our Asia Core Credit team took a deep dive into the company’s plans for the future after the company held an on-site investor event on June 9, 2021. The event gave great insight into the company’s plans to lower interest-bearing debt by RMB 10B within three years, plus the Red Star Macalline Group debt has given the company reason to repay their corporate bonds with their own cash resources or proceeds from A-share private placement if the company receives the proceeds by then. Red Star Macalline does not have any onshore issuance plan...

Filing for chapter 11 protections on Wednesday, June 9, 2021, the Alex and Ani bankruptcy came as a result of a significant revenue drop for the company in 2019 at the hand of operational and supply chain difficulties which created the necessity for a restructuring. In addition to the restructuring, Covid-19 had a major impact on the company’s sales, plus the outbreak came only six months after their consummation of the 2019 restructuring causing major issues for the company. Furthermore, the company has had significant turnover in their C-suite including departures from their CFO, chief technical officer, chief strategy officer,...

Our Asia Core Credit team has been closely covering Indonesian energy company Saka Energi. The company's Q1'21 financial disclosures confirms our earlier scoop on the company's intent to prepare a sinking fund for its $625 million 4.45% senior notes due 2024. The company has also guided operational improvements that are converging or in some instances, outperforming Reorg's conservative valuation model that we published on May 25. Click through to read more or request a trial to Reorg's Asia coverage: https://reorg.com/earnings-saka-energi-q121-revenue-46-7m-down-39-yoy/