Concurrently with the bond offering, LPX announced it is launching an exchange offer of its existing 200 million of 8.875% "secured" notes, which, if successful, would strip the bonds of virtually all covenants:
The proposed amendments would delete certain restrictive covenants from the indenture governing the Notes that presently restrict the ability of (i) the Company to incur liens and security interests on its properties and assets and to enter into sale and lease-back transactions; (ii) the Company’s unrestricted subsidiaries to become restricted subsidiaries; and (iii) the Company to merge or consolidate with or into any other person or transfer all or substantially all of its assets to any other person unless certain conditions are satisfied.Seems like things at the Nashville company are getting worse by the day.
Joke of the day: S&P rates LPX's new $350 notes BBB-. If that isn't borderline insulting negligence nothing is. Sphere: Related Content Print this post