Motor Coach Industries International was downgraded by Standard & Poor's last week, but the bank debt levels for the relatively off-the-run name remained unchanged around the mid-80s. Market participants were buzzing about a potential refinancing of the deal, but that, as well as any trades, could not be confirmed. S&P lowered the company's corporate credit and senior secured debt ratings to CCC citing concerns that weak cash-flow generation could cause the company to default on its debt obligations. Motor Coach also needs to confront covenant issues or risk acceleration on its bank loans.
Motor Coach has about $520 million in debt outstanding. The company's interest coverage multiple is around 1.4 times and it is about 6.5 times levered. Joseph Littlejohn & Levy is the company's majority shareholder. Questions for Allan Swanson, Motor Coach's cfo, were referred to a spokeswoman, who did not return calls.