The bank debt of Maxim Crane Works, formerly Anthony Crane Rental, has continued to creep up over the past month as the company pursues a restructuring. Traders said the paper traded in the 78-80 range up from the 751/2-77 context where it was quoted last month. Market buzz indicates that a potential restructuring will likely give lenders a portion of restated bank debt and a piece of equity in a reorganized company.
There was a rumor that Maxim Crane was looking to file a pre-packaged bankruptcy plan by March 15, but no such plan has emerged. The company was acquired by Bain Capital in 1998. Officials from Bain did not provide comment by press time. Officials at CIBC World Markets, the firm that is advising the company, declined comment. Joe Vaccarello, Maxim Crane's cfo, did not return calls.
Maxim Crane entered into an amended and restated credit agreement in March 2002 with Goldman Sachs as the lead arranger and syndication agent and Fleet National Bank as the administrative and collateral agent. At that time, the company had a $300 million, six-year revolver; a $50 million, eight-year non-amortizing term loan; and a $250 million, seven-year first-priority term loan. The amount of debt still outstanding under that facility could not be determined.