Tekni-Plex's 12 3/4% senior subordinated notes due in 2010 dropped eight points mid-week after the consumer packaging company said it expects to violate its bank covenants. "The fourth quarter is usually their best because garden hose sales are seasonal, so the deterioration in earnings is unexpected," said Liley Mehta, associate director at Standard & Poor's. She attributed the slack demand for hoses to the Northeast's cool and wet summer. She added S&P is reviewing the credit but had not taken any ratings action on the single-B plus notes as BW went to press last week.
Packaging Company's Notes Dip
