Notable (Amazon, Energy XXI, Key Energy, Penn Virginia Corp.)

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Amazon. Patent activity tipped off designs on fulfillment and logistics aspirations now closer to reality with the Whole Foods transaction. Elsewhere in Amazon land, the company is becoming a massive lender and most people are walking around with Amazon plastic in their pockets too.

Australian Distress. Anchorage Capital Group is sniffing around Ten Network Holdings.

Energy XXI Gulf Coast Inc. ($EXXI). Fired a bunch of people.

Key Energy Services ($KEG) sold frac stack and well testing assets for $23.7mm. 

Penn Virginia Corp ($PVAC) has hired Jefferies to explore a potential sale one year after emerging from bankruptcy. The current owners (here, Strategic Value Partners LLC, Anchorage Capital Group LLC and Contrarian Capital Management LLC) of all of these restructuring oil and gas players are, seemingly, running for the hills creating a glut of sell-side engagements for bankers.

Private Equity. The House of Representatives just passed legislation that would loosen regulations on the private equity industry - including the need to register with the SEC. Suffice it to say, many large institutional PE investors like CalSTRS expressed opposition to the new legislation. 

THL Credit ($TCRD) has closed its third direct lending vehicle with $511mm of AUM.

News for the Week of 3/12/17

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  • Commercial Real Estate Backed Loans. Looks like J.C. Penney store closures could impair $30b of loans.
  • European Elections & CDS. Investors perceive greater redenomination risk in France and Germany.
  • European Retail. It seems the bloody retail phenomenon isn't exclusive to US retailers. Jack Wolfskin, a German producer of outdoor wear and equipment, is in the midst of a restructuring of its $365mm of debt. The Blackstone Group is the company's sponsor and PJT Partners is shopping the company. Meanwhile, Jaeger, a UK-based clothier is also on the block, with an administration within the bounds of possibility. AlixPartners is advising the company.
  • High Yield. Valeant Pharmaceuticals, Foresight Energy and Community Health Systems all issued new high yield debt this past week and what screams of a massive yield grab. No, we're not joking: this actually happened. And demand was so strong that upsizing took place. We repeat: "demand was so strong that upsizing took place."
  • Oil & Gas Fallout. Like we said last week, we're crushing Ramen so it's hard to feel sorry for a man pulling in $2mm and a $50k/month consulting fee, but its interesting to see some of the effects of the energy downturn - here, relating to Energy XXI's former CEO. 
  • Power. The Westinghouse saga got juicier with Weil and the Japanese Prime Minister basically saying put up or shut up. Meanwhile, FirstEnergy is involved in shenanigans and Exelon is now getting active. 
  • Private Equity History Lesson. A review of J.Crew's take-private transaction and private equity's affinity for dividends, long-term viability be-damned. 
  • Puerto Rico. Sh*t is getting real and people are starting to clamor for bankruptcy.
  • Television. Netflix is going after unscripted reality TV. Choice quote: "The competition should be scared out of their minds. These guys are monsters — they're coming in to play and play hard."
  • Uber. Expansion in India seems to be predicated upon a mountain of driver debt.
  • Rewind I: Five weeks ago we reported the following: "The Finish Line Inc. announced its sale of Jack Rabbit Sports this week (66 locations) for undisclosed terms. "Undisclosed terms" = GU gels and a jock-strap." Apparently, we were too generous with our characterization of the financial consideration. Something tells us this won't stop Peter J. Soloman from dutifully and opportunistically noting the tombstone on its pitch materials for the next big retail mandate.  See, also, this.
  • Rewind II: Looks like Avaya Inc. has a potential buyer in publicly-traded Extreme Networks Inc. for its networking business (for $100mm).
  • Rewind III: Store closures. Add Staples to the list (70 locations) and Signet Jewelers (165 stores). And here is one report on the failure of BCBG.
  • Chart of the Week: 
  • Chart of the Week II: 

News for the Week of 11/20/16

  • Alberta, Canada. Steps needed to weather the oil downturn. In the US, some claim that oil-related job loss is bottoming.
  • Coal. Restructuring professionals have made millions in Arch Coal, Alpha Natural Resources, and Peabody Energy. But there's real pain out there in coal country - pain that Trump has promised to assuage by bringing back jobs. With that in mind, "Blood on the Mountain" looks like required viewing. This preview is compelling: we urge you to watch it. Even if others are more realistic about those job prospects.
  • Sears. The retailer's issues accelerate as suppliers get increasingly nervous and some predict this will be its last Christmas. Retail, generally, looks set to bludgeon private equity.
  • Fast Forward: Nuverra discloses restructuring talks, UCI International DS approved and marching towards confirmation, Stone Energy launches solicitation and filing in early December, JCrew hires Lazard, Homer City forbearance extended to 11/21, Paragon Offshore back to drawing board with cram-up attempt thwarted, Energy XXI announces PSA.  
  • Rewind I: An in-depth discussion of the Nasty Gal collapse.
  • Rewind II: Steinway Musical Instruments. Is apparently not a restructuring target yet. The company received an equity cure from Paulson & Co., pushing any potential restructuring activity deeper into 2017. 4th Quarter sales will be critical to avoid covenant pressure in '17.
  • Chart of the Week: