Chassix, Connacher Oil and Gas, and
Chassix, which supplies engineered chassis and powertrain components to automotive OEMs and Tier 1 suppliers, saw its 9.25% notes trade at a fresh record low. Its PIK toggle notes due 2018 also took a dive, going from 84/85 two weeks ago, and now are pegged at 20. (You can read about how PIK toggle bonds work here.)
Contemplating undertaking a reorganization, Chassix has hired financial advisor Lazard, legal counsel Weil Gotshal & Manges, and FTI Consulting, thus securing a spot on the Restructuring Watchlist.
Calgary-based Connacher Oil and Gas is a company focused on harvesting bitumen. It has principal assets at the Great Divide oil sands property near Fort McMurray, Alberta, as well as Thornbury and Quigley lands. The company trades publicly in Toronto under the symbol CLL.
Connacher bonds traded on Nov. 17 at record lows for a second consecutive session after the company reported third-quarter results that included an ominous warning: "The company’s current debt structure and limited access to additional financing ... create material uncertainties that may cast significant doubt about the company’s ability to continue as a going concern."
Guitar Center, a retailer of music products in the US, faces an uphill battle as comparable same-store sales are down and the company struggles to compete with online providers. A bond offering in March is part of a broad recapitalization effort. On Nov. 19, ahead of an earnings call, the company’s CEO resigned and a new CEO was appointed.
The aforementioned bonds inched up, but the distressed securities level lands the company on LCD's Watchlist.
The complete and updated version of LCD's Restructuring Watchlist is printed below.
LCD Restructuring Watchlist |
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Issuer | Industry | Action pending | Details |
Allen Systems / ASG Software | Software services | skips coupon | Nov. 7, 2014: GSO, KKR, Franklin buy all 1L debt, seeks further deleverage amid restructuring negotiations. |
Altegrity / U.S Investigations | IT services | hires advisors | Nov. 6, 2014: Reports flag Capital Mgmt, Oaktree as top lenders. Evercore advising as Jan. 1 coupons loom. |
Retail | seeks default waiver | June 19, 2014: Co. seeks default waiver after firing CEO. | |
Arch Coal | Coal producer | distressed securities | Oct. 28, 2014: Bonds near record low 38 after 3Q report. |
Gaming | restructuring negotiations | Nov. 20, 2014: Secured notes advance on new plan for Ch.11 with conversion of co. into a REIT | |
Chassix | Automotive components | hires advisors | Nov. 18, 2014: Reports Lazaard, Weil, FTI Consulting. |
Colt Defense | Gun manufacturer | default warning | Nov. 18, 2014: Bonds rally back to 55 on news of a lifeline loan, paid Nov. 15 coupon; reports Perella hired. |
Connacher Oil and Gas | Energy E&P | going concern warning | Nov. 13, 2014: Going concern warning in 3Q report. |
Dex Media | Marketing | sub-par buybacks | Sept. 18, 2014: 3rd round of TL buybacks are completed at 86%, 78% par. Accepted bids total $35.2 million. |
DynCorp International | Defense contractor | covenant relief | Nov. 10, 2014: Nets 4th amendment to credit facility. |
Education Management | For-profit education | restructuring negotiations | Nov. 5, 2014: Lawsuit contests out-of-court reorg plan. |
EveryWare | Consumer products | in forbearance | July 31, 2014: TL amended, Monomoy injects cash. |
Getty Images | Multimedia | distressed securities | Sept. 25, 2014: Bonds again testing 75 with market slump. |
Guitar Center | Retail | distressed securities | Nov. 19, 2014: Bonds inch up to 62 after 3Q results. |
Gymboree | Retail | distressed securities | Nov. 17, 2014: Bonds hit record low 56 after 3Q results. |
Hercules Offshore | Oil & gas drilling | distressed securities | Nov. 13, 2014: Bonds hit record low 53 as oil prices fall. |
iPayment | Business services | distressed exchange | Oct. 3, 2014: Cut to CC, warned on SD, as distressed exchange launched to market with 70% participation. |
J.C. Penney Company | Retail | distressed securities | Oct. 8, 2014: CDX balloons to 12 points upfront after co. cuts sales forecasts; bonds fall to near 70. |
Logan's Roadhouse | Restaurants | distressed securities | Nov. 5, 2014: Bonds fall to 71 after co. delays 10-K. |
MidWest Vanadium | Mining | in default | March 15, 2014: 30-day grace passed, in default. |
Milagro Oil & Gas | Energy E&P | in default | June 17, 2014: Caa3 rating withdrawn on insufficient info. |
Milk Specialties Company | Consumer Products | in default | Nov. 3, 2014: Seeks waiver for delayed financials. |
Molycorp | Mining | distressed securities | Nov. 6, 2014: Bonds trade up to 64.5 on debt swap. |
Niska Gas Storage | Energy storage/transport | distressed securities | Oct. 31, 2014: Bonds plunge to 75 after big 3Q miss. |
RadioShack | Retail | Ch. 11 warning | Oct. 29, 2014: Bonds at 41 after turnaround hire. |
Reddy Ice | Packaged foods | downgrades | Nov. 25, 2014: Cut to CCC, from B-, on covenant concern. |
Rue 21 | Retail | distressed securities | June 11, 2014: Buyout bonds recover to 80 after results meet expectations, following test of record low 59 in May. |
Sotera Defense Solutions | Security technology | covenant violations | Jan. 23, 2014: Rating withdrawn after covenant breach. |
Town Sports International | Fitness clubs | stressed credit | Oct. 24, 2014: TL hovers in mid-80s. |
Verso Paper | Paper products | distressed securities | Oct. 31, 2014: Co. unveils mill sale to clear antitrust hurdles for NewPage merger. 11.75% notes rise to 86. |
Walter Energy | Coal mining | distressed securities | Sept. 23, 2014: Bonds hit record low of 28. |
Waterford Gaming | Gaming | in default | Sept. 16, 2014: Cut to D; failure to pay Sept. 15 maturity. |
Weight Watchers International | Consumer services | distressed securities | Oct. 29, 2014: TL rises to 81 as 3Q results beat estimates. |
Xinergy | Coal mining | distressed securities | Nov. 7, 2014: Nets $25M from Aries Energy via convertible loan issuance to help service interest payments. |
Source: S&P Capital IQ LCD |
Contact Marc Auerbach for questions on the Watchlist or LCD Research.