Second Lien Loans: When One Lien Just Isn’t Enough

Several companies amended Second Lien Agreements over the past few weeks. Thermadyne Holdings, a global supplier of welding products, amended its 2004 agreement to increase the company’s total indebtedness from $14 million to $25 million. The maturity date of the lien was also pushed back into 2012. Likewise, Quest Energy Partners disclosed its third amendment to a second lien loan, which moves back its maturity date from September 30 to October 31. Also in the energy sector, the oil and gas developer Rosetta Resources amended its Second Lien Agreement to allow the company to invest in U.S. government securities. Boise, Inc., a manufacturer of packaging materials, was able to use the proceeds of a private placement, through which the company issued $300 million aggregate principle amount of 9% senior notes, to repurchase all indebtedness outstanding under its Second Lien Credit and Guaranty Agreement.

From New Mexico to China: Alternative Energy Deals Get Done

Alternative energy companies on both sides of the Pacific serve as a reminder that although tough times are still upon us, business continues to get done. Several companies in the alternative energy sector disclosed memoranda over the past few months that they hope will grow into profitable partnerships. Most recently, International Isotopes, Inc. reached a Memorandum of Agreement with the Environmental Department of New Mexico to set limits on storage and processing of depleted radioactive material at the company’s planned Uranium De-Conversion and Fluorine Extraction Process plant. In September, First Solar, Inc. disclosed a Memorandum of Understanding struck with the Ordos City Government in China for the development of a business model upon which the parties would cooperate to build a photovoltaic power plant in the Ordos New Energy Industry Demonstration Zone.

Joint Ventures: Two Heads are Better Than One

Joint ventures are popping up in company disclosures to the SEC. Two recent examples come from the biotech sector and the apparel and accessories market. Quick-Med Technologies recently disclosed a Joint Development and Exclusive Option Agreement with Avery Dennison Corp. The companies are collaborating to combine Quick-Med’s NIMBUS antimicrobial technology with medical adhesives. Quick-Med could earn payments of $100,000 if all milestones are met. In the apparel and accessories market, Reuters reports Iconix Brand Group has agree to purchase a majority interest in Ecko, a privately held brand portfolio. For the upfront cost of $63.5 million, Iconix could earn more than $25 million in annual royalties from the joint venture in 2010.

Bank Failures Reach a Milestone: God Bless the Other 99

It has been a tough year for financial institutions. So much so that seven banks have the distinguished honor of being tied for the 100th failed U.S. bank of 2009. Of the seven banks, three are from Florida, a state badly beaten by a plummeting real estate market. Partners Bank, Hillcrest Bank, and Flagship National Bank helped push the total of failed banks to 106 for the year. The deposits of Partners and Hillcrest were assumed by Stonegate Bank of Fort Lauderdale, Florida. The deposits of Flagship National were assumed by First Federal Bank of Lake City, Florida.