F+W Publications Sends Up Red Flag To Investors

F+W Publications warned lenders last week that it may breach covenants on its $400 million credit, causing the company's second lien to drop more than 10 points.

  • 28 Oct 2005
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F+W Publications warned lenders last week that it may breach covenants on its $400 million credit, causing the company's second lien to drop more than 10 points. As CIN went to press Friday, lenders were preparing for an 11:30 a.m. conference call to get to the bottom of the company's problems. "Nobody knows what's going on," said one investor before the call. "It looks like quite a mess. If they need an amendment, it will be very expensive."

F+W alerted lenders of its covenant concerns in a memo Wednesday night. Investors speculated the company was having a problem with its inventory accounting because of an IT glitch in an inventory management system. The initial reaction in the secondary market was not good. "It fell off the cliff, I guess they are playing 'Where's Waldo,' as they are looking for the books," an investor said. On Thursday the first lien was listed between 94 1/2 -97 and the second lien was 85-95, but tightened to 85-93 at close, a third investor said. According to Markit, the second lien had been trading at 101-102 at close Wednesday. It is rumored one investor picked up some of the second lien at 85 on the assumption that although there may be a glitch in the system, it is still a real company that sells a lot of product.

The credit comprises a $50 million revolver, a $250 million first lien and a $100 million second lien. ABRY Partners bought F+W from Providence Equity Partners for $500 million in July. JPMorgan and Credit Suisse First Boston did the staple financing, leading the $400 million deal for the transaction. Peggy Koenig, a partner at ABRY, and officials at F+W, did not return calls. A CSFB banker declined comment, as did a JPMorgan spokesman.

  • 28 Oct 2005

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 13 Mar 2017
1 JPMorgan 94,925.33 384 8.39%
2 Citi 87,531.58 331 7.74%
3 Bank of America Merrill Lynch 84,341.49 288 7.46%
4 Barclays 75,288.19 241 6.66%
5 Goldman Sachs 68,504.71 208 6.06%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 14 Mar 2017
1 Bank of America Merrill Lynch 10,650.87 23 11.13%
2 Deutsche Bank 8,169.49 17 8.53%
3 HSBC 6,243.46 23 6.52%
4 Citi 4,355.35 13 4.55%
5 SG Corporate & Investment Banking 4,273.37 17 4.46%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 21 Mar 2017
1 JPMorgan 5,440.56 17 10.74%
2 Deutsche Bank 4,468.97 23 8.82%
3 UBS 3,742.72 17 7.39%
4 Citi 3,393.89 23 6.70%
5 Goldman Sachs 3,360.93 18 6.63%