...- U.S.-based sock manufacturer Renfro Corp. recently completed a transaction with approval from all its lenders whereby it issued a new $10 million super priming term loan facility to fund its operations. This facility included $5 million of new money in the form of a delayed draw term loan and a $5 million roll-up from the original term loan into the new super-priming term loan. - The company also effectively converted the cash interest payments on its original $220 million ($135 million outstanding) term loan due June 2021 to payment-in-kind (PIK) payments and the interest payments on its $20 million priming term loan due June 2021 from partial cash and PIK interest to all PIK until its maturity with unanimous lender approval. - We view the transaction as distressed and tantamount to default on the $20 million priming term loan and $220 million term loan because of their now junior collateral position relative to the newly issued tranche. Also, the conversion of the term loans to all-PIK...
