...- U.S.-based sock manufacturer Renfro Corp. recently completed a transaction whereby it issued a new $10 million super priming term loan facility to provide additional liquidity in order to fund its operations, if needed. 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. We viewed the transaction as tantamount to a default on the existing term loan and priming term loan. - The company also executed amendments to its term loan and priming term loan to shift their interest payments to payment-in-kind (PIK) interest until maturity. We viewed this transaction as a distressed exchange. - Although the interest deferral enhanced the company's liquidity, we view a payment default or restructuring as highly likely in the next six months absent significantly favorable changes in Renfro's circumstances. This is primarily due to the refinancing risk associated with its upcoming...
