Atkins Nutritionals' $215 million first lien dropped to the mid-70s, while the $78.5 million second lien fell into the mid-40s. A trader said a negative lender call has put downward pressure on the price. These are the lowest levels since sponsors Parthenon Capital and GS Capital Partners bought the company in November 2003. UBS leads the bank loans.
An Atkins' spokesman declined to comment on issues related to the bank debt and would only say, "We are going forward." When asked if Atkins would file for bankruptcy, he said it was the first time he had heard that in North America.
A month ago Atkins' first and second lien slumped to 83-85 and 61-65, respectively, after a lender call in which the private-equity firms signaled they would not contribute more equity to the company (LMW, 2/21). Atkins' first and second-lien loans are priced at LIBOR pus 3 1/4% and LIBOR plus 5 3/4%.