Platinum-backed Aventiv strikes deal with lenders on multi-track restructuring

Max Frumes
+Rachel Butt

20 March 2024•2 min read

Platinum Equity-backed prison phone operator Aventiv has struck a deal with a group holding more than 90% of its first and second lien term loans to either sell the business or equitize outstanding loans to hand control to lenders, according to 9fin sources.

Bloomberg reported this morning that a deal had been struck.

The sale process has been mapped out in a transaction support agreement (TSA) with an ad hoc group of lenders advised by Gibson Dunn and Evercore. To bridge the time of the sales process, which is expected to take a year, Platinum Equity is kicking in $20m while lenders are providing $20m in the form of new debt, sources said.

Lenders also agreed to extend the term loans due 2024 to July 2025, and leave the second lien loan due November 2025 in place. The second lien loan is currently quoted at around 8 cents, down from 52.5 cents at the beginning of the year.

Aventiv’s agreement outlines that if certain milestones aren’t met, its board members can get together and decide to equitize sooner, or take a sale offer that’s below the debt, sources said. Either option could be effectuated via a prepackaged Chapter 11 bankruptcy, sources said.

Platinum owns some of the second lien debt, which helped the company garner greater than 90% participation in the TSA, sources said. The sponsor has held Aventiv in its portfolio since 2017.

Milbank and PJT Partners have been advising Aventiv, sources said.

A representative at Aventiv declined to comment. Platinum, Milbank and PJT, Gibson Dunn and Evercore didn’t respond to requests for comment.