The bank debt for National Equipment Services (NES) has been slowly ticking up over the last the two months. Small trades are 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 name climbed out of the 70s, where it was quoted in September, according to LoanX.
The company filed its disclosure statement in 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 under the credit led by Wachovia Bank will be given their pro rata share of the company's exit facility. The exit facility will consist of a $300 million revolver and a $196 million amortizing term loan. The amount that the company is able to draw 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.
In March, the bank debt for NES slipped into the low 60s with large pieces changing hands. The company filed for bankruptcy in June. 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.