• Paul Hastings represents lenders in BrightPet Nutrition talks
• Morgan Stanley marks down BrightPet loan position to 56 cents on the dollar
• A&M Capital Partners owns majority stake in BrightPet since 2020

Lenders to BrightPet Nutrition are in talks to take control of the premium pet food manufacturer as part of a debt restructuring, said three sources familiar with the matter.

A year ago, lenders agreed to extend the maturity dates on several Man Varagon-agented term loans, issued under the name AMCP Pet Holdings, from October 2026 to January 2028, according to Markit. BrightPet secured an additional USD 4m term loan last month that matures this November.

Paul Hastings is representing lenders to the company, said two of the sources.

Morgan Stanley’s Direct Lending Fund marked a USD 48m position in BrightPet loans at 56 cents on the dollar as of 30 June, down from 82 cents at the start of the year, according to Debtwire’s BDC database. Two BDCs managed by BC Partners report also holding the loans.

A&M Capital Partners, the middle market investment strategy of Alvarez & Marsal Capital, acquired a majority stake in BrightPet in 2020. CEO Dave Kowal told this news service in 2022 that the company hoped to double in size under the ownership of A&M.

Headquartered in Lisbon, Ohio, BrightPet operates three businesses: outsourced kibble manufacturing, outsourced treat manufacturing and a portfolio of company-owned premium pet food and treat brands. Its brands include Blackwood, Adirondack and By Nature.

Houlihan Lokey and Dechert advised BrightPet on the A&M takeover. Kirkland & Ellis advised A&M Capital Partners, which has a strategic association with financial consultant Alvarez & Marsal.

BrightPet Nutrition, A&M Capital, Varagon, Paul Hastings and BC Partners didn’t return requests for comment. Morgan Stanley declined to comment.