Alkegen creditors sign co-op agreement
- Max Frumes
- +Shubham Saharan
Certain creditors of Alkegen have formalized a cooperation agreement, according to sources. The company, formerly known as Unifrax, held its first quarter conference call 3 June in which the company gave no update to its 2024 outlook, sources said.
The secured and unsecured bonds are now quoted to distinguish the non-coop paper, according to quotes from trading desks.
What’s more, the company’s secured bonds and loans are quoted at more than a 40-point difference, with the secured bonds nearly pari with the unsecured bonds, given the expectation that the Clearlake-backed concern will structure any liability management solution around the bonds, sources told 9fin.
9fin previously reported that secured creditors hired Milbank and Lazard. According to sources, another creditor group organized with Perella Weinberg.
Non-coop paper of the $800m 5.25% secured notes due 2028 are quoted at around 53-56, and the $400m 7.50% unsecured notes is quoted at 49.5-52.5, both up since quotes before the private earnings call, according to sources and 9fin data. The first lien €310m and $660m for first lien term loan debt due 2025 are quoted at 94.75-96.5 and 96.75-97.75, respectively, according to sources
In total, the company has more than $1bn of outstanding term loan debt due in December 2025, with a $200m revolver due 2027 that has a springing maturity if the term loan is not refinanced within 91 days of maturity.
The company had revenue of $256m in the first quarter, which was up 3% sequentially, and down 8% compared with the same quarter year-prior, while liquidity is $166m, including $82m in cash and $84m in the revolving credit, which is down $35m from the end of 2023, according to a source.
The company, Clearlake, Perella, Milbank and Lazard did not respond to requests for comment.
The largest holders of its dollar term loan include CLO funds of PGIM, HPS Investment Partners, Bain Capital Credit, and Sound Point, according to 9fin data.
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