"The numbers have been poor, the whole Atkins craze has reached its peak," one sellside trader said. A trader at a major desk added, "People seem uncomfortable with the credit." As LMW went to press, Mark-It Partners/LoanX quoted a market of 82-86 1/2 on the second lien.
The bank debt was only put in place last November, when Parthenon Capital and GS Capital Partners bought the company in an LBO (LMW, 11/10). UBS led the financing for the buyout, which also includes a $30 million revolver. Atkins revolver and "B" loan are priced at LIBOR plus 3 1/2% and LIBOR plus 3 1/4%, respectively. The second-lien is priced at LIBOR plus 5 3/4%.
Repeated calls to an Atkins spokesman were not returned. Questions for John Rutherford, co-chief executive officer at Parthenon, were referred to a spokeswoman, who also did not return calls. Muneer Satter, a managing director in the principal investment area at GS and a director of Atkins, did not return calls. A GS spokesman could not provide comment by press time.
Ironically, Atkins is said to have negatively affected carbohydrate-based food producers such as Interstate Bakeries, which has slipped in the secondary (see story, page 5). "I do believe there is a relationship, [but] it is not entirely obvious," an Interstate spokesman said. He added that probably at the height of the low-carb craze, Interstate could have seen its sales negatively impacted.