Cenveo Corp: Closes Printing Plant

According to news reports, Cenveo Corp announced on May 5, 2020 the closing of a major printing plant, and the loss of 184 jobs. Another sign that the Covid-19 crisis is causing a sharp drop in business. The company was not able to give the required 60 day notice.

Cenveo has been rated as underperforming since IIIQ 2017, with a Corporate Credit Rating of 3. We are downgrading the printer to a CCR 4 status. It’s impossible to tell if the company is at risk of defaulting on its debt.

There are two BDCs involved with $19.1mn of exposure in debt and equity at cost: Main Street Capital (MAIN) and sister BDC HMS Income. At IVQ 2019, the debt was carried at a premium to par but the equity was discounted (44%). We’ll learn more about how the BDCs measure their values shortly with the IQ 2010 results.