Atkins Nutritionals' bank debt levels continue to whither under growing doubts about the company's strength. "Inventory is building up," a trader said, adding Atkins has no assets that would significantly secure the bank debt. Atkins' $215 million first-lien was quoted in the low 80s, down from the 85-90 context it was quoted in two weeks ago. The $78.5 million second-lien was also quoted in the low 60s, down from the 80-83 range. It could not be determined if trades had taken place at those levels.
Atkins' $293 million bank debt was put in place last November, when Parthenon Capital and GS Capital Partners bought the company in leveraged buyout. At the time, the company's bank debt traded above par, a trader said. UBS led the financing for the buyout that also includes a $30 million revolver. Atkins revolver and "B" loan are priced at LIBOR plus 3/2% and LIBOR plus 3 1/4%, respectively. The second-lien s priced at LIBOR plus 5 3/4%.
Calls to Parthenon officials were referred to an Atkins spokesman, who declined comment. Doug Graham, an official in the principal investment area at GS Capital partners, declined comment.