"Founded in 1905, Anchor Hocking is a leading marketer and manufacturer of a comprehensive line of glass products including beverageware, candle containers, servingware, ovenware, storageware, lighting components and other glass products sold under various brand names or as customized solutions for private label lines. Anchor Hocking is the second largest supplier of glassware in the United States. Its glassware products cross all price points through the retail, specialty (business-to-business), and hospitality channels". From the LinkedIn Profile.
"The Company filed for bankruptcy and emerged from Chapter 11 bankruptcy in 2015, saying it reduced its debt by about 84 percent". Press Report
The Company is owned by its prior lenders, including a small stake by one BDC.
BDC Credit Reporter View
Anchor Hocking, whose parent is named EveryWare Global, has a long history as a manufacturer of glassware, with plants in Pennsylvania. However, the Company has had a troubled corporate history in recent years. The Company filed for bankruptcy in 2007, but was acquired by a private equity group which expanded the number of products by strategic acquisitions and sold a portion of stock to the public. However, in 2015, after business and operational difficulties (including strikes by the unionized workforce)the Company filed for bankruptcy again. This time the bankruptcy was "pre-packaged" and involved $300mn in senior debt being converted into equity and the Company becoming "Lender-owned" with a reported 96% of the stock. Since then the Company has disclosed little financial information. However, we know 2 senior executives, with Procter & Gamble backgrounds, have been recruited to lead the business. In November 2016, after long negotiations, a new union contract was agreed.
There is only one BDC with current exposure to Anchor Hocking: Main Street Capital or MAIN. (Garrison Capital or GARS did have exposure to the pre-2015 bankruptcy entity, but did not continue after recording a Realized Loss). MAIN's exposure began in 2013 in the form of $11mn in senior debt. As part of the bankruptcy, the debt was reduced to $2.3mn into a Term Loan due in 2018. In addition, MAIN converted $4.9mn of debt into presumably what is a small stake in the equity of the post-bankruptcy company. A Realized Loss for the remainder was booked in 2015. Subsequently, the value of the equity and, to a lesser degree, the debt reduced further through 2015 with the former discounted by 37% and the latter by 8%, according to Advantage Data records. In 2016, the values have stabilized, which suggests progress is being made in the turnaround. With the new union contract, the BDC Credit Reporter believes we may see a higher value in the IVQ 2016 filings so we are marking the Credit Trend as up. We have a Corporate Credit Rating of 3 on the Company, which means we are optimistic the Company may ultimately be able to meet its lenders/investor expectations and all debt and equity (post-bankruptcy) will, at least, be recouped.