DISTRESSED DAILY: Lender Group Set to Own Logistics Firm Neovia

Neovia Logistics Services LLC is handing the keys to three of its biggest lenders to get relief from a wave of maturing debt, a move S&P Global Ratings analysts said was “tantamount to a default.”

Oaktree Capital Management, Ares Management, and Vector Capital are converting $420 million of Neovia’s debt into a majority equity stake in the third-party logistics company. The three lenders will also collectively provide Neovia with nearly $60 million of new financing.

Under the terms of the restructuring, lenders can exchange their first-lien term loan for a combination of preferred equity and a new ...