Oneida's bank debt has sunk almost 10 points in the market over the last month as the company continues to obtain waiver extensions for violations under its credit agreement. Traders said the paper was quoted in the low 80s last week. No trades could be confirmed. At the beginning of last month, a $35 million piece of the paper was auctioned off in the 90 range (LMW, 3/8). Those who bought it at 90 are starting to regret it, said one trader.
Oneida has most recently received waiver extensions through this Wednesday. The waivers are needed to avoid violations of the financial covenants and for $35 million in payments due on the credit facility starting in November, according to company filings. Senior noteholders also deferred a $3.9 million payment from the company that was originally due on Oct. 31 until April 14. J.P. Morgan is the agent for the credit and Oneida had about $230 million in long-term debt as of Jan. 31.
Oneida is conducting discussions with its lenders and potential new financing sources to restructure its debt and obtain liquidity. The flatware company was also negotiating with a unnamed private equity investor about a potential equity infusion, but talks failed. Calls to Gregg Denny, Oneida's cfo, were referred to the spokesman, who declined to comment on the identities of the firms involved.