Reorg Blog

Discussing REIT chapter 11 filings and out-of-court restructurings and financings that certain REITs are using to avoid bankruptcies, our Americas Core Credit experts Mark Fischer, Kevin Eckhardt and Wing Li conducted a webinar on Friday, April 23 at 11:00am ET to help provide further transparency on the industry. Our team discussed certain REIT subsectors and how companies have restructured capital structures in light of reduced revenue caused by the Covid-19 pandemic. Mall REITs CBL and Pennsylvania REIT have each sought chapter 11 protection, and Washington Prime Group has warned of a possible chapter 11. However, hotel REITs Ashford Hospitality and...

Written by Stephen Aldred, Managing Editor, Asia Core Credit || Indonesian textile company PT Sri Rejeki Isman Tbk’s (Sritex) restructuring will play out in an arena where the company has far narrower funding sources available. Sritex’s lenders are sounding the market to sell their holds. The company’s bonds are trading in the low to mid-30s and its unsecured loan debt is expected to price south of those marks. Somewhat perversely, reduced funding sources may serve the company well, as increased scale has not improved Sritex’s operating efficiency. Sritex has generally seen a lengthening working capital cycle financed by debt, resulting in poor...

More recently than ever, the success rates for lenders to push back against terms in their agreements or to push for the inclusion of others have increased. 2021 leveraged loan market trends have taken a turn to benefit lenders, plus some terms that used to be considered aggressive are becoming more and more familiar in these amendments. Our Americas Covenants team analyzes and reviews some of the most prominent 2021 leveraged loan market trends emphasizing the fact that these are exceptions to the rule.  First, the team discusses the most favored nations (MFN) protection where lenders have been trying to...

Written by Noor Sehur, Analyst Team Lead, EMEA Core Credit || The European primary market continues to remain favourable for new issuances. Reorg’s primary pipeline shows 36 companies with near-term maturities, 16 possible LBO deals and three deals from bolt-on acquisition financings which could take advantage of the attractive primary market. Recent deals with attractive pricing included Gatwick’s 4.375% 2026 bonds. The bonds were supported by the airport’s exposure to short haul flights, and equity cushion despite continued travel demand uncertainty. Advanz Pharma’s 2028 bonds also offered a premium to comparable bonds. Although most deals have priced tighter than original guidance in recent...