The bank debt for Hagemeyer has been quoted down around the 75 context as the company announced that it has obtained standstill agreements from most of its lenders. The agreement waives defaults on the company's credit lines and assures the continuation of the loans. The bank debt levels dropped from "non-existent" to 75, said one buysider of where the bank debt was quoted previously. No trades could be confirmed, but the buysider said he expected there would be a few auctions of the paper. The company had almost E896 million in debt as of June 30. Its subordinated debt is quoted in the 30s range.
Hagemeyer has been in discussion with its lending group since earlier this year. The company has also been working with its creditors on several strategies to recapitalize and secure liquidity. Possibilities include restructuring debt and obtaining new equity. Hagemeyer is based in The Netherlands and is a provider of value added business-to-business distribution services focused on the electrical materials, safety and other maintenance, repair and operations products. An investor relations spokeswoman could not be reached by press time.