Not much appetite for Bis Industries’ debt

According to The Australian’s DataRoom column, giant Japanese lender Mizuho called for bids for its debts at 85c in the dollar but was “met with an anaemic response”.

Sources told the newspaper that a more realistic price for Bis’ debt was in the mid-50 cent and 60 cent level.

“So far no loans in the company have changed hands, largely due to restrictions written into the financing documentation,” said The Australian.

Bis’ owner, US$60bn US private equity fund Kohlberg Kravis Roberts (KKR), has previously tried, unsuccessfully, to sell the business via an initial public offering. It has injected another $250m into the business more recently, according to The Australian.

Bis’ chief executive Ian Lynass left the company in May after it lost a major contract with FMG.

Acting in his place is former CFO Brad Rogers.

Bis describes itself as “a leading provider of bespoke, high payload off-road load and haul solutions. We combine proven single and dual powered equipment solutions with specialised operational and maintenance experience.

“Our Dual Powered Road Trains (DPRT’s) and Pit Haulers offer improved flexibility and higher payloads than traditional equipment. In the core of their unique design, a second engine is incorporated underneath one of the trailers. These combinations can haul payloads of up to 500 tonnes per truck (although more typically 300 to 360 tonnes) comprising three to six trailers depending on the application.”