The bank debt for Oneida has ticked up about eight points to the 90 level in the past month as a potential recapitalization for the company nears. One banker said the debt was moving upwards even though the last call the company gave was negative on sales. She said lenders appeared comfortable with the company’s cost-cutting plans. The debt was quoted at the 90 level earlier this year, but reportedly dropped to the low 80s in April when talks with a potential equity investor failed (LMW, 5/7).
Last week, Oneida, which makes flatware and dinnerware, said its lenders have agreed to continue to waive financial covenants and postpone reductions in the company’s approximately $225 million revolving credit facility to July 15. This is an extension of waivers obtained in April. Oneida is working with its lenders to implement a comprehensive recapitalization and is working toward obtaining by July 15 an agreement, said an Oneida spokesman. He declined to elaborate on the recapitalization and said the company does not comment on the trading of its securities.
J.P. Morgan is the agent for the credit. Bank of America, Fleet National Bank, HSBC Bank, M&T Bank, Bank of Nova Scotia, European American Bank (now owned by Citibank) and Banca Nazionale Del Lavoro were among the list of original lenders and signers of the first amendment last November, according to company filings. The identities of the current senior debt holders could not be identified.