Maxim Crane's debt has settled in the 73-75 level after the company announced that its senior lenders will receive the majority of the equity in the company. One trader said there was an inter-dealer trade recently that pushed up the price slightly. Two weeks ago, the largest crane rental company in the U.S., which is over 70% owned by Bain Capital and was previously called Anthony Crane Rentals, announced a pre-negotiated Chapter 11 restructuring.
The restructuring process will reduce total debt by $450 million from $700 million, said a spokeswoman for the company. She could not provide the names of the lenders beyond the leads of the debtor-in-possession facility. Goldman Sachs and Fleet Boston, now Bank of America, are leading the $70 million DIP facility. These banks also led the company's pre-petition bank debt. She said the company became overleveraged after debt-financed acquisitions and plans to emerge from bankruptcy in the fourth quarter. Leonard LoBiondo of Kroll Zolfo Cooper was appointed chief restructuring officer.
Rumors surfaced almost three months ago that a restructuring would give the lenders a portion of restated debt and a piece of equity in the company (LMW, 3/15). There was a flurry of trades done around this time and the debt jumped approximately 20 points to the 78 1/2 level.
One dealer said that the bank debt has been around for a while, so many of the original lenders are now out. Some of the original firms include banks, CLO and floating rate funds, such as APEX IDM CLO, ING Prime Rate Trust, PB Capital, PNC Bank and Merrill Lynch Senior Floating Rate. It could not be determined which lenders are still involved.