Panavision has about $175 million in bank debt coming due over the next 12 months and could potentially breach its EBITDA covenant in the latest quarter ended Sept. 30 and the next quarter, states Moody's Investors Service. Leverage covenant compliance is also uncertain for this past quarter. The company's term loan was quoted in the 932/3-961/3 range last week, according to LoanX. But no trades could be confirmed. J.P. Morgan leads the company's credit line, and Panavision had $99.2 million outstanding on its revolver and $164.5 million on its term loan as of June 30.
Panavision has been in discussions to determine how it should best proceed, said a source, declining to comment on whether or not a new bank line is a possibility. The company pulled its most recent attempt to raise $275 million via the high-yield markets after investor appetite for high-yield paper turned against issuers. At that time, the company also "deferred its plans to replace its existing credit agreement with a new credit agreement," according to the company filings. Bobby Jenkins, executive v.p. and cfo, declined to comment.