News and Analysis
SIRVA nets priming loan to bridge to broader restructuring
- Max Frumes
- +Rachel Butt
•1 min read
SIRVA has raised between $70m to $80m via a new money priming loan in order to bridge the company to a broader debt restructuring, according to sources. The loan does not roll up any existing debt and negotiations are ongoing for a broader deal, sources said.
The moving services company, advised by Kirkland & Ellis and Centerview, remains in negotiations with creditors holding portions of the company’s more than $1bn of debt, according to sources.
According to various public disclosures and ratings agencies, the company has a first-lien revolver and senior secured debt that comes due in 2025. This includes a SOFR+550bps term loan due August 2025. The company also has second-lien debt at SOFR+950bps due in August 2026.
A secured lender group has organized with Lazard and Paul Hastings, while there is also a second lien group, according to sources.
The company has been pressured by high mortgage rates and low US home sale values. Most of SIRVA’s debt is coming due in 2025, including the secured revolver, first lien term loan, senior secured notes and securitization facility, according to a note from Moody’s in February.
Madison Dearborn Partners acquired SIRVA in 2018. The company then merged with BGRS in 2022, expanding to more than 190 countries.
Madison Dearborn declined to comment. A representative for SIRVA did not respond to a request for comment.
Our customers receive this news ahead of the crowd. To learn more about news on the 9fin platform, request a free trial below.
