Grand Vehicle Works Holding Corp. (GVW) and Meridian Automotive Systems are garnering attention from distressed desks.
The Carlyle Group's GVW's $165 million first lien, a stressed deal led by Citigroup, traded in the mid-90s and is being handled by some distressed desks. GVW's first lien has a $135 million "B" loan and a $30 million revolver, which is priced at LIBOR plus 3%. The company's second lien is priced at LIBOR plus 6%. GVW is in the process of negotiating an amendment.
Meanwhile, Meridian's $175 million second lien traded in the low 80s. "Meridian exhausted all the cash, investors expect them to ask for more," a trader said. Meridian has been in the 80s for some time, but is now starting to get more play in the distressed market, traders said. The second lien is priced at LIBOR plus 9%. Meridian has a $230 million first lien that trades on par desks at 96-97 and is priced at LIBOR plus 4 1/2%.
Additionally, Texas Pacific Group'sGate Gourmet International $160 million "B" tranche remains in stressed territory and found a market in the low 97s. Gate Gourmet's "B" is priced at LIBOR plus 6 1/2%. The deal dropped from the 103 range to distressed territory after the airline caterer disclosed disappointing numbers last December. Credit Suisse First Boston leads the Gate Gourmet and Meridian deals.