Aurora Foods was a touch stronger last week as market players anticipated positive news at the company's bank meeting last Tuesday. The bank debt was quoted last Monday in the 92-93 1/2 context up from the 91-92 range. The details of the bank meeting could not be determined, but the bank debt held its levels after the meeting. Traders did say that pending asset sales were not discussed. Aurora Foods has been working toward the divestiture of its frozen foods businesses and has stated that a sale is expected in the near future.
In accordance with amendments to the company's credit facility and additional financing agreements, Aurora Foods committed to completing $100 million in asset sales by June 30; $125 million by Sept. 30 and $100 million by March 2004. The proceeds from the sales are slated to repay the company's bank debt and failure to meet this schedule would subject the company to interest rate and cash penalties, according to a Securities and Exchange Commission filing. Calls to Aurora Foods financial officials, including William McManaman, cfo, were not returned by press time.