BY CONTINUING TO USE THIS SITE, YOU ARE AGREEING TO OUR USE OF COOKIES. REVIEW OUR PRIVACY & COOKIE NOTICE
X
HOME > OUR THINKING > > BLOG

Bankruptcy: Altegrity In Revamp Pact to Reduce Debt By $700M Via Chapter 11

Altegrity has finalized the terms of a restructuring support agreement with holders of more than $1.3 billion of secured debt, representing about 70% of the company’s first-lien debt and 95% of the company’s second- and third-lien secured debt, the company announced late yesterday.

The company said the restructuring would be implemented through a Chapter 11 filing.

As reported, last September the company lost two key government contracts in its USIS segment (“Altegrity bonds, loan move off lows following lost contracts”), prompting downgrades from both S&P and Moody’s and accelerating the company’s need for a restructuring. S&P, for example, in connection with its September downgrade flagged the “likelihood of a liquidity event or restructuring within the next six months.”

Under the restructuring announced yesterday, the company said its second and third-lien noteholders would convert their debt into equity, becoming the new majority owners of the reorganized company, while the company’s first-lien debt would be amended to “facilitate the restructuring and otherwise remain in place.”

In addition, the company said, certain second- and third-lien noteholders, including funds managed by Third Avenue Management, Litespeed Management LLC, and Mudrick Capital Management LP, “also committed substantial new capital to fund the company’s operations and support the business throughout the restructuring process.”

In addition, the company said it recently completed the sales of its Factual Data business, which provides mortgage and verification services, and the Global Security and Solutions division of its USIS segment, adding, “The majority of the proceeds from these sales will be offered to pay down existing first-lien debt at the conclusion of the restructuring.”

In sum, the company said, the restructuring and proceeds of the asset sales are expected to reduce debt by approximately $700 million, or 40%. 

More leveraged loan and high yield bond news, analysis:

www.leveragedloan.com

www.highyieldbond.com

Subscribe to Insights