(Bloomberg) -- Textile company Lycra Co. is in talks with its creditors about extending its more than $1 billion in looming debt maturities.
The firm has about $700 million in dollar bonds, €300 million of euro notes and a term loan of over $150 million due next year, according to data compiled by Bloomberg. To address that maturity wall, Lycra is getting financial advice from bankers at Houlihan Lokey Inc., said people with knowledge of the matter.
The company has been pitching an extension of the debt deadlines to creditors, said the people, who spoke on the condition of anonymity. Lycra did not immediately respond to a request for comment and Houlihan Lokey declined to comment.
Lycra, which makes form-fitting elastic material used for yoga and cycling clothing, has been under pressure for years. Former parent company Ruyi Textile and Fashion International Group defaulted on a $400 million mezzanine facility, eventually leading to a restructuring and a takeover by a group of lenders including China Everbright Limited, Lindeman Asia, Lindeman Partners Asset Management and Tor Investment Management in 2022.
Last year Lycra also faced some imminent debt deadlines, and issued new bonds to repay existing ones. To boost the attractiveness of the new debt, it carried out a so-called drop-down, which entailed moving $75 million worth of intellectual property assets away from the reach of the existing bonds to unrestricted subsidiaries and then used these as collateral.
The dollar notes, issued via vehicle Eagle Intermediate Global Holding BV, are quoted at around 57 cents on the dollar, according to Bloomberg pricing. The euro ones, issued last year following the drop-down out of vehicle Linx Capital Ltd, are at around 82 cents on the euro.
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