American Safety second liens see biggest fall in June

American Safety Razor’s second liens saw the biggest price movement of any leveraged lien loans in June, according to a report compiled by Markit Group. The US blade makers second lien loans fell by 33 points to 10.3 cents in the dollar, as it became increasingly likely that this class of debt would be all but wiped out in a restructuring. The company, which lost an important Wal-Mart contract earlier this year, has been in debt restructuring talks with first lien debt holders. Meanwhile, second-lien holders have seeking to put forward their own alternative restructuring proposal, according to recent media reports.

The company’s first and second lien loans are widely held in CLOs, with around 15% of deals having exposure to the name according to Creditflux's CLO Master. CLOs are more heavily invested in the first liens than the second lien loans.