PETITION

In June 23rd’s “Plastic is Ripe for a Reckoning (Long Ridiculous Branded Water)and in a short follow-up on June 30, we talked about how plastic has a bullseye on it. In the latter, we wrote:

Meanwhile, we were curious whether all of this talk about aluminum and glass taking over for plastic was having an effect elsewhere. Compare the bids for Anchor Glass Container Corp’s $150mm second lien term loan maturing 2024:
On May 6, the bid was 55.6 with a yield-to-worst of 25.2%.
On June 24, the bid was 71.4 with a yield-to-worst of 18.5%.
Long bullishness on glass containers?

S&P clearly doesn’t think so:

Here we go again again again? @SPGlobalRatings recently downgraded Anchor Glass to CCC+, asserting its capital structure is unsustainable. Leverage projected to stay close to 10x. The glass bottle maker filed for Chapter 11 three times, most recently in 2005.
— David Elman (@_davidelman) September 11, 2019

Here is where the second lien term loan traded this week: 70.7.

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