Gate Gourmet International's $165 million "B" loan continued to slide and traded at 94 1/2-95 1/2 as the market digested the company's struggles. The mezzanine debt saw a market at 79-80 and the $50 million multicurrency revolver traded around 92-94, said traders.
Two weeks ago the bank debt for Gate Gourmet dropped from above par levels to stressed territory after the company disclosed bad financial numbers as difficult conditions in the airline industry pressured the business (LMW, 12/20). "As part of our discussions with the bank group, we put forward a series of requests that are intended to provide our business with additional flexibility regarding our credit facilities," a Gate Gourmet spokeswoman said at the time. She added the proposals do not indicate imminent financial distress and that the company has adequate liquidity to meet all of its business needs.
Gate Gourmet also has a $73.3 million "A" loan and a $58.6 million "C" tranche. The bank deal backed Texas Pacific Group's $675 million acquisition of the airline food caterer two years ago. Credit Suisse First Boston and Citigroup lead the debt.