Private Lenders Pitch Restructuring for Stressed Pallet Company

(Bloomberg) – Special lenders proposed to reconstruct a potential debt for the 48th School solutions after Summit Partners’ purchasing majority shares at the pallet management company.

People who want to discuss the private information, the company’s debt contains a special loan of approximately 1.75 billion dollars, he said. People, Antares Capital, Kkr & Co. and Blackrock Inc., lenders, including a re -capitalization agreement in October, said.

Representatives of Antares, KKR and Blackrock refused to comment, 48. and Summit representatives did not respond to their requests for comments.

The private loan industry of $ 1.7 trillion, companies began to see more stress symptoms as they struggled with a weakening consumer. Investors follow how the asset class will handle a potential decline, because the market has not yet been tested by one after growing rapidly in recent years.

According to a May regulatory file, the FS KKR Capital Corp., a business development company jointly managed by KKR and FS Investments, has reduced the value of 48forlu loan in the first quarter.

In a call that discusses their first quarter earnings, Daniel Pietrzak, BDC’s chief investment manager, said 48FORY’s “labor costs and extreme inventory”. 48. He said he had a withdrawal of consumer expenditures.

48Fforty provides recycled wooden pallets and pallet management services in the US and Canada.

As of March 31, the Company was pricing most of the interest rate of debt by 6 percent points. The same payment agreements allow borrowers to postpone cash interest payments up to maturity.

The October Re -capitalization agreement also saw that Summit Partners, who first invested in the company in 2022, received the 48th majority stake.

If the restructuring occurs, 48Fforty, Alacrity Solutions, Zips Car Wash and Pluralsight Inc. It would join an increasing company list with other people, including other people.

According to a Fitch Ratings report, the default rate for the US private loan began to reach 4.6%in May. As a reason for the increase, Fitch said “Macroeconomic challenges that weaken the North American Corporate Credit Environment and higher interest rates and growth slowing”.

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