Aurora Foods bank debt took a hit last Tuesday trading down to the 92 range off from the 97-98 range after the company reported poorer than expected losses, including a $20 million pretax charge. One trader referred to the trades as a "panic sale." Dealers said the market for the name had risen again to the 94-95 context by midweek. The company has been working on a turnaround plan for the last 18 months, but market players said that lenders were getting weary with the name.
The St. Louis-based company produces many food brands including Mrs. Butterworth's, Duncan Hines, Lender's, and Celeste. Calls to William McManaman, the company's recently appointed executive v.p. and cfo, were referred to a spokesman, who had no comment. Traders quoted the market for the revolver in the upper 80s. The revolver is fully funded, one dealer explained. No trades of the pro rata paper could be confirmed.