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Clinton, Ramius discuss restructuring of Lenox bank debt, possible exchange for equity
By Lisa Kerner
Charlotte, N.C., Sept. 19 - Lenox Group Inc. investors led by Clinton Group, Inc. and Ramius LLC said they have begun talks about a possible restructuring of the company's bank debt, potentially including the conversion of the borrowings to equity.
The investors said they have discussed, and expect to continue to discuss, the potential restructuring with other holders of the bank debt as well as with the company's board of directors and its management.
Ramius owns $24.75 million of Lenox's term loan while Clinton did not disclose the size of its ownership.
According to a schedule 13D filed with the Securities and Exchange Commission, the bank debt is owed under Lenox's amended and restated term loan credit agreement dated April 20, 2007.
Both funds also hold Lenox's equity. Clinton owns 18% of Lenox, while Ramius has an 11.8% interest in the Eden Prairie, Minn.-based gifts and collectibles distributor.
In August Lenox said it expected to be out of compliance with the financial covenants in its credit facility at the end of the third quarter.
The negative impact of current economic and retail market conditions were to blame, it was previously reported.
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