Atkins Nutritional's $215 million first-lien loan has ticked up to the 80-82 range from 73 1/2-75 1/2, where it traded three weeks ago. Meanwhile, the company's $78.5 million second lien was offered in the 60-62 context, up from the 53 1/2-57 1/2 range where it was quoted at that time (LMW, 10/11). A buysider said the company's cash flow seems to be fine and the products are well. Trading activity on the name has decreased though.
Meanwhile, a sellside trader said the company was looking at doing another inventory write-down. Inventory is accumulating and they will be selling it cheap, he explained. There is also continued speculation about the possibility of an acquisition by a larger company. "If they had a chance to sell [the company], they would," the buysider noted.
Atkins debt took a slide last month under doubts about the company's financial situation and the viability of its weight loss philosophy (LMW, 9/13). An Atkins spokesman did not return calls for comment.