Bank Loan Report articles from April 2004

Bank Loan Report archives from April 2004

Wachovia, UBS Move Into Top 10 For US Leveraged Loans In Q1.
April 5, 2004... Despite anticipation that increased M&A activity in recent months could ultimately translate into increased loan supply, the numbers for the first quarter 2004 just didn't add up to reflect any increased loan volume. In fact, US loan volume...

DebtX Branches Services Into Germany.
April 5, 2004... Many US loan market players have been paying more attention to the European loan market over recent months. This is because yield-hungry US loan investors - who are trying to find alternative outlets for investment due to the scanty new deal...

NTL/Telewest Merger Rumors Swirl...Again.
April 5, 2004... As NTL and Telewest Communications approach the end of their respective financial restructurings, analysts and investors are once again buzzing about the possibility of a merger of Europe's beleaguered cable giants. In the past few weeks,...

Charter Surfaces With Jumbo Refi Plan To Consolidate Debt.(Charter Communications Inc. refinancing)
April 5, 2004... After weeks of refinancing rumors circulating the loan market, Charter Communications finally announced a course of action to refinance its subsidiaries' large bank debt pile. Charter said its indirect subsidiary, Charter Communications...

Razor Company Shaves Down Bond Debt With Refi Deal.(American Safety Razor Company)
April 5, 2004... UBS was scheduled to launch syndication last Thursday of a $225 million senior secured credit facility for American Safety Razor Company. The deal includes a five-year, $25 million revolver priced at Libor plus 300 basis points; a seven-year,...

ADESA Credit Overfills With Pro Rata Players.(ADESA Corp.)(Brief Article)
April 5, 2004... ADESA Corp.'s $500 million recapitalization deal was oversubscribed by pro rata lenders as of late last week. A banker familiar with the deal said there was so much interest from the company's existing relationship banks that there was most...

UBS Leads Hollywood Entertainment Buyout Line.(Hollywood Entertainment Corp.)(Brief Article)
April 5, 2004... Besides arranging the credits for American Safety Razor and ADESA last week, UBS also announced that it is leading the debt financing that will back Leonard Green & Partners' $837 million buyout of Hollywood Entertainment Corp., the...

BNP Paribas Slips Into Maidenform Financing.(Brief Article)
April 5, 2004... BNP Paribas is set to launch syndication on April 13 of a $180 million credit that will back the $215 million acquisition of Maidenform by Ares Management. The credit includes a $90 million first lien term loan and a $30 million revolver with...

ABN Heads Back Into European HY To Recapture Market Share.(ABN AMRO Bank N.V. (Amsterdam, Netherlands))
April 5, 2004... The announcement three weeks ago that ABN Amro had hired James Courtenay to head up its European leveraged finance and high yield group sparked renewed speculation as to whether the bank was heading into the European high yield market. In an...

Charter Faces CLO Exposure Restrictions On New Refi Deal.(collateralized loan obligations )
April 12, 2004... Lead banks JP Morgan, Bank of America, Credit Suisse First Boston and Citigroup had racked up at least $3 billion in tickets for Charter Communications' mammoth $6.5 billion bank credit last week, including over $1 billion for the $3 billion...

Market Reacts To Second Liens In CLOs.
April 12, 2004... Second lien bank loans have been more frequently appearing in new (collateralized loan obligations) CLOs, especially as managers look for higher yielding collateral during this period of historically tight spreads. Second liens offer between...

BIS: Interbank Lending Down In 1Q 2004.(Bank for International Settlements )
April 12, 2004... The strengthening of the global economy in 2003 and into 2004 led, among other things, to a considerable reduction in interbank lending, the Basel, Switzerland-based Bank for International Settlements (BIS) stated in its latest quarterly review...

Jumbo MGM Bank Credit To Supply Dividend To Shareholders.(Metro-Goldwyn-Mayer)(Brief Article)
April 12, 2004... The shorter holiday week meant there wasn't the usual flood of new bank deal meetings last week. But buysiders were nonetheless busy, as some new credits for companies such as Metro-Goldwyn-Mayer (MGM) and Buckeye Partners hit the market. They...

Goldman Shops Buckeye Partners Acquisition Loan.(Glenmoor Acquisition Corp.)(Brief Article)
April 12, 2004... Goldman Sachs launched syndication last week of a $100 million term loan to back the acquisition of Glenmoor Acquisition Corp. - the parent company of Buckeye Partners' general partner, Buckeye Pipe Line Co. - by Carlyle/Riverstone Global...

BofA Syndicates Telepak.(BankAmerica Corp.)(Brief Article)
April 12, 2004... In addition to MGM, BofA was in the market last week with a $325 million deal for Telepak - also known as Cellular South. This credit includes a $150 million revolver priced at Libor plus 175 basis points and a $175 million term loan priced at...

CSFB, Goldman Rev Up Meridian Automotive Second Lien Terms.(Credit Suisse First Boston)(Meridian Automotive Systems Inc)
April 12, 2004... Credit Suisse First Boston and Goldman juiced up pricing on the second lien piece for Meridian Automotive, increasing pricing on the seven-year, $175 million tranche from Libor plus 700 basis points to Libor plus 850 basis points. The arrangers...

UBS To Shop Sunny D, Punica Juice Biz Buyout Credit.(Brief Article)
April 12, 2004... Looking ahead, UBS is set to roll out a $375 million bank credit toward the end of this month to back J.W. Childs Associates' acquisition of the Sunny Delight and Punica juice businesses presently owned by The Procter & Gamble Company (P&G)....

Bank Trio To Syndicate Coal Co. Revolver.(PNC Bank, UBS and CSFB)(Brief Article)
April 12, 2004... PNC Bank, UBS and CSFB are poised to launch syndication of a fully underwritten, five-year, $175 million revolver for Alpha Natural Resources this month. Abingdon, Va.-based Alpha Natural Resources, a privately owned company with subsidiaries...

Ascom - The Perfect Corporate Turnaround Story?(Ascom Autelca Ltd.)
April 12, 2004... Any high yield investor who said that Swiss company Ascom would prove to be one of the major success stories of 2003 was spot-on. Ascom, a manufacturer of telecommunications and service automation equipment, managed to stave off bankruptcy...

Moody's: HY Bond Loss Up 3-to-1 Over Spec-Grade Bank Loans.
April 12, 2004... Credit losses on high yield bonds are about three times higher than credit losses for speculative grade loans, according to a recent report released by Moody's Investors Service. The report, written by Moody's VP and senior analyst Kenneth...

Boyd Gaming Deal Hits Loan Market Amid Rosy Sector Outlook.
April 19, 2004... Bank of America and CIBC World Markets brought a widely anticipated $1.5 billion bank deal to market for Boyd Gaming Corp. last week. Although investors appeared enthusiastic about the deal, successful syndication of the credit still remains to...

OCC: New Rep. Risk Guidance Imminent.
April 19, 2004... Regulators are focusing on reputation and legal risk as they prepare to issue guidance seeking to bolster financial institutions' controls and risk management systems that relate to complex structured transactions. Those transactions,...

European HY And Mezzanine Converge.(high yield )
April 19, 2004... The European mezzanine and high yield markets have historically been separated by factors such as liquidity, yield, structure, deal size and risk. Over the past 18 months, however, the distinction between these two markets has gradually been...

Western Wireless Taps Market For $1.5 Billion Refi.(Brief Article)
April 19, 2004... JP Morgan and Wachovia Securities launched syndication of a $1.5 billion refinancing credit for Western Wireless Corp. last Wednesday. The deal includes a six-year, $300 million revolver and a six-year, $200 million A term loan, both priced at...

CSFB, Morgan Stanley Shop WellCare Acquisition Financing.(Harmony Health Systems)(Credit Suisse First Boston )(Brief Article)
April 19, 2004... Credit Suisse First Boston and Morgan Stanley were scheduled to launch syndication last Thursday of a $210 million credit for WellCare Health Plans. The B/B2-rated, fully underwritten credit includes a five-year, $160 million institutional loan...

Holmes Group Markets Dividend Recap.
April 19, 2004... CSFB also launched syndication last Wednesday with co-lead GE Capital of a $420 million dividend recapitalization deal for The Holmes Group. The credit includes a $75 million, five-year revolver and a $240 million, seven-year first lien term...

Gundle Deal To Finally Surface.(Gundle/SLT Environmental Inc.)(Brief Article)
April 19, 2004... After announcing its acquisition plans on Dec. 31, 2003, Code, Hennessy & Simmons' buyout financing deal for Gundle/SLT Environmental is expected to finally surface within the next two weeks, according to market sources. Over recent months, the...

Las Vegas Sands Increases Flexibility With Shoppes Sale.(Brief Article)
April 19, 2004... Las Vegas Sands, a casino operator and owner, announced plans last week to sell the Grand Canal Shoppes of its subsidiary, Venetian Resort-Hotel-Casino, as well as its Phase II retail space, to General Growth Properties in a transaction...

Barclays Appoints Howard As Global Head Of Credit Research.(Brief Article)
April 19, 2004... Barclays Capital has appointed Mark Howard as managing director and global head of credit research. Howard, who will be based in New York, was formerly a managing director and global credit strategist at Lehman Brothers. The new hire comes...

KKR Launches New Investment Fund.(Brief Article)
April 19, 2004... Kohlberg Kravis Roberts & Co. announced last week it will form a new publicly traded investment fund that will target "opportunistic investments," such as high yield bonds, distressed debt, or securities of public companies. The private equity...

Jefferies Expands EHY Team.(Brief Article)
April 19, 2004... Michael Khouri, former high yield and investment grade salesperson at BofA, has resigned and will be joining his former BofA boss, David Lofts to concentrate on high yield sales at Jefferies, London, sources said. Lofts left BofA several weeks...

Regal Entertainment Jumps On S/holder Dividend Bandwagon.
April 19, 2004... With Metro-Goldwyn-Mayer (MGM) still in market syndication with its $2.4 billion credit facility - which will provide a large dividend to its shareholders - Regal Entertainment Group has decided to also jump on the bandwagon with a...

Have Second Lien Loans Had Their 15 Minutes Of Fame?
April 26, 2004... With arrangers having to tweak their second lien deals more frequently, and traditional investors increasingly passing on the tranches, some market players are starting to wonder if the second lien loan's 15 minutes of fame in the mainstream...

BofA BC To Pack Bigger ABL Punch.(asset-based lending)(Bank of America Business Capital)
April 26, 2004... The asset-based lending (ABL) powerhouse formerly known as Fleet Capital Corp. may have gotten a new name - Bank of America Business Capital (BofA BC) - but the lending division is still, for the most part, intact following the official merger...

Investors Look To PanAmSat Mega Deal.
April 26, 2004... After much anticipation, PanAmSat Corp. will finally be visiting the debt markets in the near future for a financing package to back its $3.53 billion buyout by affiliates of Kohlberg Kravis Roberts & Co. (KKR). The acquisition was announced...

Bank Trio To Lead Rockwood's Buyout Financing Package.
April 26, 2004... UBS, Credit Suisse First Boston and Goldman Sachs have been chosen to arrange the financing package that will back Kohlberg Kravis Roberts & Co.'s (KKR) and CSFB Private Equity's acquisition of Dynamit Nobel's chemicals unit. Princeton,...

Leiner Health Products Prepares For Recap.(Brief Article)
April 26, 2004... Leiner Health Products will be hitting the market early next month with a $650 million deal that will support the store brand manufacturer of vitamins, nutritional supplements and over-the-counter drugs' recapitalization by private equity firms...

Gundle/SLT Environmental Hits Market.(Brief Article)
April 26, 2004... Beyond planning for the Rockwood or Leiner Health deals, UBS also launched syndication last Thursday of a smaller $65 million deal for Gundle/SLT Environmental. The credit includes a $25 million term loan priced at Libor plus 300 basis points...

Revlon Plans Extensive Debt Revamp.
April 26, 2004... Revlon announced that it plans to lower the company's annual interest expense and extend the maturities of most of its debt through a large refinancing package under its subsidiary Revlon Consumer Products Corp. (RCPC) that includes the...

American Tower To Refinance Bank Credit.(Brief Article)
April 26, 2004... American Tower Corp., an infrastructure provider for the wireless and broadcasting industries, announced last week that it plans to refinance its existing credit facility, as well as finance general corporate purposes, with a new $1.1 billion...

Junk Pros Balk At FSA's Proposals To Stem Research Conflicts.(Financial Services Authority )
April 26, 2004... By May 1, UK banks must physically segregate research analysts from the sales and trading desk, either by seating them on a different floor, or behind a glass wall. But meeting the rest of the requirements of the draft proposals recently...

Raymond James Builds Up High Yield Sales Team.
April 26, 2004... Over the past year Raymond James Financial, the Florida-based provider of financial services, has been ramping up its high yield and convertibles desk. What's more, sources familiar with the firm say it is poised to make further hires in order...