Case Study
Unlocking Private Insights with Octus: Oregon Tool
Octus delivers clarity in the most complex credit situations. With over a decade of expertise, over 300 experts, and access to the most private company data in the world, we are the go- to source for deep legal analysis, financial data and news that shapes markets.
Our granular coverage of Oregon Tool, a Portland-based leader in professional-grade chainsaw and forestry consumable parts and attachments, displays the Octus Trifecta–world-class journalism, and expert legal and financial analysis–at its best, including:
- Sophisticated legal insights from Covenants Analysis, providing contextualized, relevant analysis into stressed credits and event-driven situations
- Best-in-class credit memos (20-25 pages) from Private Company Analysis, the industry’s only deep-dive financial research on private companies with high-yield bonds and leveraged loans in the US and EMEA
- Breaking scoops and all the latest market updates from the Octus Credit Intelligence and Middle Market Intelligence reporting teams
Background
Oregon Tool was bought by Platinum Equity in 2021 on peak earnings supported by record demand and inventory buildup. Following a wave of destocking that started in late 2022 and weak demand, revenue and EBITDA plummeted, while interest cost has increased alongside rates eclipsing adjusted EBITDA. As we ramped up our Private Company Analysis product in 2024, Oregon Tool was a perfect candidate for our coverage.
2024
September 12 | Coverage initiation
Octus initiated on Oregon Tool, having identified a near-term liquidity need for the overleveraged manufacturer and distributor of chainsaw parts and other consumable parts used for forestry and cutting applications. A recovery in the sales following a period of post-Covid-19 destocking had been delayed, driving substantial cash burn. Despite this, we were constructive on the business, expected high recoveries for the term loan, and projected the capital need to be relatively limited. Term loan at initiation was bid 73 at initiation, while the senior bonds traded at 39.
September 23 | Covenant analysis
Given the urgent liquidity need and discounts across the capital structure, Octus has analyzed Oregon Tool’s covenant flexibility to execute priming lien uptier, drop-down, double-dip and pari plus transactions. The term loan continued to be bid in the low-70s context.
November 11 | Private Company Analysis financial research
Octus covered and analyzed Oregon Tool’s earnings, discussing the development of our thesis, the company’s runway, and management’s commentary on the lender call. The term loan was bid at 72.
2025
January 9 | Reporting on cooperation pact
Octus reported that creditors represented by Davis Polk formed a cooperation pact. The term loan bid dropped in December, reaching 57 by Jan. 9.
January 15 | Reporting on potential LME
Oregon Tool began discussing potential liability management exercises with a majority lender group amid a prolonged earnings slump, as reported by Octus. Lenders excluded from the Davis Polk group have been exploring options with Glenn Agre.
February 20 | LME announcement
Oregon Tool announced that it entered into a liability management exercise today that was supported by approximately 81% of existing unsecured noteholders and 83% of existing term loan holders as well as 100% of the company’s revolving credit facility lenders. As a result of the transactions, Oregon Tool increased its liquidity by approximately $150 million, in line with our initial analysis, and reduced its pre-transaction debt obligations by over $75 million.
February 24 | LME Private Company Analysis and Covenants report
Octus prepared an analysis of Oregon Tool’s liability management exercise, including a deep dive into the LME, financial forecasts under Oregon Tool’s new capital structure, as well as an updated waterfall. Oregon Tool’s LME used an “extend and exchange” strategy – similar to that debuted by Better Health a month prior.
March 3 | Covenants landscape analysis
Following the novel non-pro-rata “extend and exchange” transactions completed by Better Health and Oregon Tool and the Serta and Mitel decisions, Octus has put together a comprehensive report discussing the evolution on the non-pro-rata exchange element of the consensual LME analysis.
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