Ambrosia Buyer Corp: IIIQ 2021 Update

We’ve written about Ambrosia Buyer Corp (aka Trimark USA) three times before, with the most recent update after the IQ 2021. We wish we could tell what’s going on of late at the restaurant supply company from the public record, but we can’t. However, we can report that as of the IIIQ 2021 Apollo Investment (AINV), which holds second lien debt with a cost of $19.6mn continues to carry the debt as non performing. The amount invested at cost is reducing from quarter to quarter, suggesting that the BDC might still be receiving debt service but is paying down the principal with the proceeds.

At 9/30/2021 the AINV FMV in Ambrosia is $9.3mn, a (53%) discount from cost. The par value given is $21.4mn. The discount in the IIQ 2021 was substantially the same. This is an increased discount from the IQ 2021, which was (38%). We’re guessing that the disputes between the lenders to Ambrosia is still being fought out in court.

We continue to rate Ambrosia as CCR 5, with some ($1.3mn) of annual income forgone since the IVQ 2020. We can’t estimate what the final outcome might be as the company – and the debt – remains in flux.