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Transtar Holding Company

Consumer Products website LinkedIn
Automotive Products Distributor

"Transtar Holding Company is an integrated portfolio of brands that provides world-class customer service, distribution and manufacturing of OE and aftermarket automotive products.

The company has grown significantly since its beginnings as a transmission parts supplier, Transtar Industries, founded in 1975 in a suburb of Cleveland, Ohio. Through market growth, share gain, and the acquisition of major players and competitors, the portfolio expanded into the global leader that it is today". The Company filed for Chapter 11 bankruptcy protection on November 20, 2016.

BDC Credit Reporter View

Transtar has been on the Watch List as Under-Performing since the IVQ of 2015, according to Advantage Data records, which show the first material write down came in that quarter. From the IIQ of 2016 the status was shifted to Non Performing as the second lien debt went on non-accrual status. On November 20, 2016 the Company filed for a pre-packaged bankruptcy in which the lenders to the Company-including the only BDC involved New Mountain Finance or NMFC-will swap $425mn of debt for 100% of the equity. The swap still requires court approval so the BDC Credit Reporter's keeps the status at Non Performing, the Corporate Credit Rating at 5 (but likely to go to 4) and the Credit Trend as Up hereafter given that the restructuring has been agreed and the debt load will be greatly reduced. NMFC valued its $31mn of debt at 30% of par at 6-30-2016 and announced a further mark-down to 13% of par in the IIIQ quarter. NMFC expects to recognize a Realized Loss of over $30mn (including unearned income) in THE IVQ of 2016. We estimate the Realized Loss is equal to about 3.3% of NMFC's capital at par, but essentially all the loss had been booked into Unrealized Depreciation at September 30, 2016. A small amount-under $4mn- will either remain as debt or be converted into an equity instrument.