Certain Intrado lenders have signed non-disclosure agreements, as negotiations regarding a proposed amend-and-extend transaction advance, according to three sources familiar with the situation.
As first reported by Debtwire, the Apollo-sponsored borrower enlisted PJT Partners for assistance to address roughly USD 2.755bn of term loan debt due in 2024. For its part, an ad hoc group of lenders coalesced with Evercore and Gibson Dunn, as reported.
Central to negotiations, lenders will likely receive a loan paydown from proceeds tied to the recent sale of Intrado's Safety business to Stonepeak. Back in September, the company agreed to sell the business, a provider of critical public emergency telecommunications services, for USD 2.4bn.
Earnings-wise, Intrado is coming off a weak 2Q22, disclosing year-over-year declines in EBITDA and revenue, as reported. The borrower’s earnings have been crimped by weakness in its legacy audio and conferencing business.
On the top line, the borrower generated USD 284m in adjusted revenue in 2Q, compared to USD 363m in the prior-year period. The 2Q22 figure excludes the recent divestitures of Health Advocate, Flowroute and the impact of purchase accounting.
Total adjusted EBITDA in the quarter fell to USD 82m, versus USD 115m year-over-year, but up from USD 66m sequentially in 1Q22, as reported.
Liquidity-wise, Intrado had USD 143m of cash and USD 101m of availability under its revolver at 2Q-end. In July, the borrower paid off a remaining USD 10.6m 5.375% unsecured stub, which was due that month.
At 30 June, the company carried net leverage of 8.67x, based on LTM pro forma adjusted EBITDA of USD 382m and USD 3.3bn of net debt, as reported.
The call center and data management services operator, previously known as West Corp, announced in 2019 that it changed its name to Intrado. Its earnings can be choppy as its audio-conferencing segment, a legacy high-margin business, has struggled against pricing pressure and lower usage.
Intrado’s USD 685m 8.5% senior unsecured notes due 2025 last traded in small lots at 88.355 to yield 13.403% on 1 November, versus 84.734 on 6 September, according to MarketAxess.
The USD 594m Libor+ 350bps incremental TLB due 2024 is quoted 87.338/88.588, versus 77.107/79.107 on 14 September, according to Markit. Its USD 2.161bn L+ 400bps TL due 2024 is quoted 87.8178/89.288, versus 81.406/82.958 on 1 September.
A representative with the company declined comment
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