First Brands DIP Loan Looks ‘Cheap’ at 109 Cents: CreditSights

First Brands Group’ debtor-in-possession loan, which is being offered at 109 cents on the dollar, appears cheap and could lead to a bigger payout, according to a CreditSights report published on Sunday.

• Although the interest may not seem attractive, the company’s DIP lenders are best positioned for another around of capital raises, an important part of the favorable view, wrote analysts including Peter Sakon
• First Brands’ loans are marked at sharply different levels on the market, according to the report, with the DIP roll-up portion quoted at 52 cents, and the remaining first-lien term loan at 13 cents
• Other ...