The bank debt for Viasystems Group popped up on rumors that the company may be looking to complete a second-lien deal that will take out its "A" piece and part of its "B" loan. The "A" was quoted up around par. The "B" loan was quoted in the 96 3/4-97 1/2 context up from the 87 7/8-89 1/3 range, where the paper stood last week, according to LoanX. J.P. Morgan is the lead on the credit, but it could not be determined if the bank was also leading the second-lien effort. No more details could be obtained and Joseph Catanzaro, Viasystems' cfo, did not return calls by press time.
The bank debt for Hagemeyer, The Netherlands provider of business-to-business services, sunk into the low 70s on reports that the company could potentially pare down its bank debt and pursue some type of debt-to-equity swap as part of its efforts to recapitalize, explained one trader. In late October, the bank debt for Hagemeyer dropped to the 75 context as the company announced that it had obtained standstill agreements for defaults on its credit lines. The paper recovered somewhat from those levels, creeping up toward the 80 level, before the recent drop. The company has been working to recapitalize and secure new liquidity. Company officials could not be reached by press time.
The bank debt for National Equipment Services (NES) has been slowly ticking up over the last two months with small trades believed to have been completed north of the 90 level as the company winds up it bankruptcy proceedings. A $22.5 million piece was also said to have traded around the 89 context last week. The company filed its disclosure statement mid-October and is looking to get its plan of reorganization approved by the court.
Under the plan of reorganization, lenders -- with approximately $496 million in claims -- will be given their pro rata share of the company's exit facility. The exit facility will consist of $300 million revolver and a $196 million amortizing term loan. The amount that the company is able to drawn under the revolver will be subjected to a borrowing base. One trader explained that some lenders believe that the bank debt will be refinanced-and they will be taken out at par-within the next six months. NES has appointed Carl Marks Consulting Group to assist in its turnaround efforts. Calls to Duff Meyercord, NES' chief restructuring officer and a partner with Carl Marks, were not returned by press time.