While default rates are low, that doesn’t mean there isn’t trouble brewing. Buyouts has learned of several deals by established private equity players that have run into some issues.
American Asphalt & Grading Co., a provider of integrated infrastructure construction services to the Southern Nevada residential homebuilding market, is in default, according to a source familiar with the transaction.
Omniflight, an Addison, Texas-based provider of helicopter and other flight services to hospitals, has had problems with its loans as well. According to a source familiar with the deal, the sub-debt payments on the loan have been blocked.
Also, a recent $190 million senior secured credit facility made to home health care provider Tender Loving Care (TLC) Health Care Services is trading at a significant discount on the secondary market as a result of a disappointing performance. Banc of America, Monroe Capital and UBS participated in the refinancing.