CNG Holdings is close to clinching a deal that will extend the payday lender's looming debt stack, said two sources familiar with the matter.
Last month, the family-owned company launched an exchange offer targeting its USD 228m 12.5% senior secured notes due 2024, according to a S&P Ratings report published 20 July. The proposal aims to swap the bond into new USD 203m 14.5% senior secured notes due 2026 at par, while offering holders a USD 25m paydown, said the sources. Consenting holders would also collect a 375bps fee in PIK, they added.
The initial deadline for the exchange ended the evening of 2 August with overwhelming participation, allowing CNG to move forward the closing date to this week, one of the sources said.
The private exchange follows CNG’s refinancing of a USD 150m ABL facility last fall through an USD 250m SPV facility provided by Atalaya Capital, the two sources noted. The SPV replaced the ABL facility led by Fortress that was due September 2023.
Moody's Investors Service analysts wrote in a piece published last week that privately held CNG is taking steps to improve its business after a drop-off in lending following massive government stimulus spending during the COVID-19 pandemic.
Oppenheimer is serving as dealer manager and Squire Patton Boggs as legal adviser on the exchange.
Representatives for CNG, Atalaya, Squire and Oppenheimer did not return requests for comment.