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
Email a colleague
Request a PDF

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
  • Today
1 Citi 414,341.60 1584 9.03%
2 JPMorgan 377,311.36 1724 8.23%
3 Bank of America Merrill Lynch 358,416.32 1295 7.81%
4 Goldman Sachs 266,063.47 914 5.80%
5 Barclays 264,598.20 1056 5.77%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 HSBC 44,979.63 190 6.72%
2 Deutsche Bank 37,019.66 134 5.53%
3 BNP Paribas 35,303.69 205 5.28%
4 JPMorgan 33,752.71 110 5.04%
5 Bank of America Merrill Lynch 32,865.23 106 4.91%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 JPMorgan 22,398.41 104 8.72%
2 Morgan Stanley 18,608.72 99 7.25%
3 Citi 17,768.49 110 6.92%
4 UBS 17,372.80 70 6.77%
5 Goldman Sachs 17,228.66 97 6.71%