SpectraSite Holdings last week announced that it is pursuing a prepackaged bankruptcy plan to clean up its balance sheet, but the bank debt held at the operating level remained silent. While there was a rumor that a $3-5 million piece changed hands in the 84-85 range, most market players quoted the paper in the 82-84 context, where it has been resting for weeks.
The tower company's $1.085 billion facility was amended at the end of August and the outstanding amount was reduced by $215 million, but the credit was not changed in this round of reorganization, noted Tabitha Zane, v.p. of investor relations. The August amendment left the company with a $300 million revolver, a $335 million "A" term loan and a $450 million "B" term loan.
The bankruptcy plan calls for bondholders owning $2 billion in senior notes to swap their exposure for 100% of the stock in the reorganized company. The plan also will cut annual interest expenses by approximately $200 million.
SpectraSite's plan comes on the heels of restructuring news from another tower company. Earlier last week, Pinnacle Holdings announced that it had completed its restructuring plan, allowing the company to exit bankruptcy. Under that plan, the pre-petition bank debt has been rolled into a three-year, $275 million term loan, allowing bank debt holders to reduce their exposure to the company by 26% in principal.