...- Port Washington, N.Y.-based medical equipment manufacturer and distributor Medical Depot Holdings Inc. has completed a debt exchange transaction that extended its revolver maturity, suspended first-lien debt amortization for six quarters, and exchanged its second-lien debt for new convertible paid-in-kind (PIK) loans. - The transaction provides temporary relief from certain near-term cash debt service payments and offers additional liquidity in the form of the new $35 million new money term loan (not rated). At the same time, we believe the company's ongoing operational challenges with supply chain and inventory management will continue to pressure profitability and free cash flow generation, resulting in weakened credit metrics. - Without a significant business turnaround, we believe there is a risk of another debt restructuring in the intermediate term, although we believe the new $35 million term loan will provide the company with the resources to service its debt over the next 12...
