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Tensar Corporation

Construction website LinkedIn
Earth Moving Systems

"As a global leader and expert in value-engineered systems incorporating Tensar geogrids for ground stabilization and pavement and soil reinforcement, we leverage our patented geogrids and erosion control products to continually innovate and engineer applications to serve the commercial, residential, industrial, and transportation markets. We continue to lead the industry by investing heavily in research, development, engineering, and manufacturing in order to better serve our customers. Comprehensive support services, including conceptual to final engineering design, technical training seminars, and on-site support allow our dedicated employees to provide cost-effective, time-saving, and lasting solutions. Tensar is a privately held global company with successful operations around the world." From the LinkedIn Profile.

BDC Credit Reporter View

Earth-moving systems manufacturer Tensar Corporation is a privately-owned by a private equity group. The Company was acquired in 2014 by Castle Harlan. Although privately-held, the acquisition was funded with publicly rated debt so financial information is occasionally available. We know sales are in the $200mn range and have been flat for 4 years and the business has not performed as initially expected.

The Company has a Revolver, a First Lien Term Loan due in 2021 and a Second Lien Term Loan due in 2022. The only BDC exposure is by PennantPark Floating Rate Corp (PFLT) and is in the First Lien Term Loan. The position was marked down by 15% at September 30, 2016.

The BDC Credit Reporter is not optimistic about the Company's prospects of meeting all its obligations over time. Although PFLT's write-down is modest, we have a Credit Rating of 4-reflecting our expectation that ultimate losses are more likely than not. With the debt leverage covenant tightening in the IVQ of 2016, our expectation for the Credit Trend (i.e. the future value of investments) to be Down by year-end 2016.