Apex Tool’s Loan Prices Plunge on Debt Restructuring Proposal

Bain Capital-backed Apex Tool Group reached a deal with a group of lenders that would provide the company with fresh capital while allowing a handful of creditors to jump ahead in the repayment line, according to people with knowledge of the matter.

The proposal calls for debt exchanges at below-par prices and provides favorable treatment for creditors that brokered the deal, said the people, who asked not to be identified discussing a private matter. Firms that don’t agree to the exchange and which had been either first or second in line would now be relegated to fourth or fifth, ...