Bank Loan Report articles from April 2005

Bank Loan Report archives from April 2005

GE CFS Europe's Secondary Biz Is Upbeat About Liquidity Growth.(GE Corporate Financial Services)
April 4, 2005... GE Commercial Finance-Corporate Financial Services' (GE CFS) bank loan trading operation in Europe has been officially underway since January of this year, and new managing director and head of European secondary markets, Neeraj Mehta, is...

Mezz Lenders Look To Lower Middle Market.
April 4, 2005... Just a few years ago, many mezzanine lenders wouldn't even think of providing debt financing for lower middle market companies - such deals were often too labor-intensive and risky to be worth their while. However, many mezzanine players have...

M&A Could Be Major Volume Driver In '05.(mergers and acquisitions)
April 4, 2005... Over the past few months, Wall Street has been abuzz with larger M&A activity. And data from the first quarter of 2005 show that the syndicated loan market may be reaping the benefits of many of these multibillion acquisitions and leveraged...

Rayovac Taps BofA, Citigroup For Add-On To Back Tetra Buy.
April 4, 2005... Bank of America and Citigroup are slated to hit the market with a $500 million add-on credit to Rayovac Corp.'s existing facility in order to finance the company's acquisition of Tetra Holding GmbH. The company seeks to add on $200 million to...

JPMorgan, Bear Stearns Launch Wyndham.
April 4, 2005... Last Thursday, JPMorgan and Bear Stearns launched syndication of an $895 million credit facility for Wyndham International, Inc. The deal is comprised of a $175 million, six-year revolver; a $50 million, six-year letter of credit, a $530...

Five Banks To Finance SunGard Deal.(SunGard Data Systems Inc.)(Brief Article)
April 4, 2005... In connection with the enormous $11.3 billion buyout of SunGard Data Systems Inc., JPMorgan, Citigroup, Deutsche Bank, Goldman Sachs and Morgan Stanley have been tapped to provide at least $4.75 billion in senior secured debt financing, as well...

Sealy In Market With Refi.
April 4, 2005... Sealy Mattress Company hit the market last Tuesday with a $565 million term loan B. Price talk for the deal, which is being financed via JPMorgan and Goldman Sachs, is at about 175 bps over Libor, according to a source. The term loan would...

IntraLinks To Let Users Label Deals Public Or Private.(Brief Article)
April 4, 2005... IntraLinks, Inc. announced last week that it has enhanced its service to allow investors in the syndicated loan market to declare their transaction either public or private. This, in turn, gives investors more control over what information they...

GE CF Names Flynn SVP For West Region.(Stephen Flynn, GE Commercial Finance.)(Brief Article)
April 4, 2005... Last week, GE Commercial Finance Corporate Lending hired Stephen Flynn as senior vice president of origination for the west region. Flynn most recently worked as a managing director at Banc One Capital Markets. In his new role, Flynn will...

National City Opens Office In Nashville, Tenn.(Brief Article)
April 4, 2005... National City announced last week that it has opened a new full-service corporate banking office in Nashville, Tenn. The new office will provide clients with corporate banking services such as commercial lending, investment real estate...

UCC Capital Adds Canadian Office.(Lamerac Financial Corp)(Brief Article)
April 4, 2005... New York-based boutique underwriter UCC Capital Corp. added its first foreign correspondent office last month - Toronto-based Lamerac Financial Corp. - to focus on originating second lien loan transactions and whole-company securitizations...

Ratings Movers: Peabody Up To I-Grade/Dura Feels Pressure.
April 4, 2005... Peabody Energy Corp. ended the first quarter of 2005 on a positive note, as Fitch Ratings bumped its bank debt ratings into investment grade. The company's senior secured bank debt, which includes a $900 million revolver and a $450 million term...

Will Leveraged Loan Pricing Levels Ever Return To Normal'?
April 4, 2005... Considering the predominance of today's issuer-friendly market, with tight spreads galore, it's hard to believe it was only a few years ago that spreads could be as high as 300 basis points (bps) over Libor for a weak double-B/strong single-B...

US Loan Mart On Pace For Another $1 Trillion-Plus Volume Year.
April 11, 2005... US syndicated loan volume for the first quarter of 2005 topped $250 billion, a level that puts 2005 on pace for another $1 trillion-plus year. US volume totaled $1.35 trillion in 2004, and the first quarter 2005's volume was at nearly $254...

Europe Sees Strong Issuance In Q1 2005.
April 11, 2005... With a hefty $239 billion worth of loan paper underwritten in Europe in the first quarter of this year, it's no wonder that loan pros there pronounced themselves happy at the end of March. (The first quarter 2004 saw $154 billion in European...

Loan Traders Face More Complex Market.
April 11, 2005... It is well known that the syndicated loan market has changed rapidly over the past few years. The market has seen significant growth in terms of the number and type of investors in the market. And credits have become structured in a more...

DirecTV Increases Loan Facility In Lieu Of Issuing Bonds.(Brief Article)
April 11, 2005... DirecTV Holdings LLC has changed the structure of its proposed refinancing by increasing the bank facility by $500 million instead of issuing $500 million in senior unsecured notes. The company decided against the bond issuance because the...

TNS Taps GECC For Financing.
April 11, 2005... Last week, TNS Inc. announced that it has received a commitment from General Electric Capital Corp. for a $240 million credit facility, which will be used, in part, to finance a Dutch auction tender offer to purchase up to nine million shares,...

Hawaiian Telecom Launch Postponed.(Verizon Hawaii Inc.)(Brief Article)
April 11, 2005... A bank meeting initially scheduled for last Thursday, which was to launch syndication of an $875 million credit facility to back The Carlyle Group's planned acquisition of Verizon Hawaii was postponed last week, according to a source familiar...

C&A Seeks Term Loan Via CSFB.(Collins and Aikman Corp., Credit Suisse First Boston L.L.C.)(Brief Article)
April 11, 2005... Auto parts supplier Collins & Aikman Corp. (C&A) announced last week that it is seeking a six-year, $75 million term loan via Credit Suisse First Boston. Pricing for the deal is reported to be at 450 bps over Libor. The company's existing...

Dura In Market For Refi.
April 11, 2005... Last week, JPMorgan and BofA launched syndication of a $290 million credit facility for Dura Automotive Systems Inc. The new loan, which will go, in part, toward refinancing the company's existing $175 million revolver and $111 million term...

Goldman Shops Billing Services Group.(Goldman Sachs and Co.)(Brief Article)
April 11, 2005... Sole lead Goldman Sachs launched syndication last week of a $150 million bank facility for Billing Services Group LLC in connection with a dividend recapitalization. The facility is said to include a $10 million, five-year revolver; a $95...

Bank Trio Completes Krispy Kreme Deal.
April 11, 2005... Last week, Krispy Kreme Doughnut Corp. announced it had closed a $225 million credit facility, which is comprised of a $75 million revolver, a $120 million second lien term loan and a $30 million second lien prefunded revolver/letter of credit...

Cellnet In Market.(Brief Article)
April 11, 2005... Morgan Stanley and Goldman Sachs hit the market last week with a $380 million facility for Cellnet in connection with a recapitalization. The deal is said to include a $30 million, five-year revolver; a $200 million, seven-year term loan; and a...

Bailey, Bril Join BNP Paribas From JPM.(Thomas Bailey, Patricia Bril.)(Brief Article)
April 11, 2005... Last week, BNP Paribas announced that it is growing its syndication, trading and placement group with the addition of Thomas Bailey as director and head of ratings advisory and Patricia Bril as managing director and leader of the high grade...

Allton Joins Norton Rose.(Ashley Allton)(Brief Article)
April 11, 2005... Last week, international law firm Norton Rose announced that Ashley Allton is joining its London office as a partner in acquisition finance. Allton most recently worked at Hammonds, for which he was head of the banking team in the law firm's...

Ratings Movers: Nat'l Waterworks On Watch/Ladder Co. Falls.
April 11, 2005... There was little action on the upgrades front last week, although National Waterworks Inc. did see its ratings, including its B+ rating on its $250 million term loan and $75 million revolver, placed on credit watch positive by Standard & Poor's...

Highland Establishes First Euro Subsidiary With ING Purchase.(Highland Capital Management Corp., ING Capital Management Ltd.)
April 11, 2005... Investment advisor Highland Capital Management announced last week that it has completed its acquisition of London-based ING Capital Management, Ltd. from ING Wholesale Banking. The acquisition, which includes Highland's acquisition of ING's...

Public Side Players Face Challenges In Handling MNPI.(material nonpublic information)
April 18, 2005... The investor landscape of the leveraged loan market is much more complex than it used to be, as evidenced by The Loan Syndications and Trading Association's (LSTA) 2005 inaugural seminar held last week, which addressed standard documents and...

US Retail Sector Outlook Still Strained.
April 18, 2005... Relatively solid earnings during last year's holiday season and a reasonably sound economic environment have not appeared to be enough to cure the US retail sector's slumping credit quality. While some areas of the sector are seeing their...

CSFB CDO Group Expands Into Europe.(collateralized debt obligation, Credit Suisse First Boston L.L.C.)
April 18, 2005... Last week, yet another US-based collateralized debt obligation (CDO) business announced that it has expanded into Europe in order to capitalize on the burgeoning leveraged loan, high yield bond and mezzanine markets in the region. Earlier this...

Trump Hires' Morgan Stanley, UBS To Lead Ch. 11 Reorg Deal.
April 18, 2005... Last Thursday, Morgan Stanley and UBS hit the market with a $500 million bank deal that will support Trump Hotels & Casino Resorts, Inc.'s reorganization plan. The company filed for Chapter 11 bankruptcy protection last November. The...

CIT Shops ABL Revolver.(Oncology Therapeutics Network., CIT Business Credit.)(Brief Article)
April 18, 2005... CIT Business Credit launched syndication on April 8 of a $300 million asset-based credit for Oncology Therapeutics Network (OTN). The all revolver deal will support the spinout of OTN from its parent, Bristol-Myers Squibb Company, to private...

Bank Trio To Arrange SunGard LBO Loan.(Brief Article)
April 18, 2005... In connection with the proposed $11.3 billion acquisition of SunGard Data Systems Inc. by a consortium of private equity firms, JPMorgan, Citigroup and Deutsche Bank are slated to arrange a $5 billion credit facility comprised of a $1 billion,...

WCA Taps Wells Fargo For Refi.(WCA Waste Corp., Wells Fargo Bank N.A.)(Brief Article)
April 18, 2005... WCA Waste Corp. announced last week that it is seeking a $200 million credit facility via Wells Fargo Bank. The new facility, which is comprised of a $75 million, five-year revolver; a $100 million, six-year term loan B and a $25 million...

Hawaiian Telecom Launches.(Hawaiian Telecom Communications Inc.)(Brief Article)
April 18, 2005... Last Tuesday, JPMorgan, Goldman Sachs and Lehman Brothers hit the market with an $875 million credit facility to in part finance The Carlyle Group's $1.6 billion acquisition of Hawaiian Telecom Communications Inc., according to a source...

JPM Shops Diagnostic Imaging.(Diagnostic Medical Imaging Group LLC., J.P. Morgan Chase and Co.)(Brief Article)
April 18, 2005... Sole lead JPMorgan hit the market last Monday with a $130 million credit facility for Diagnostic Medical Imaging Group LLC. The facility is said to include a $20 million, five-year revolver and a $110 million, seven-year term loan B. Price talk...

GE CF Names Webster SVP.(Scott Webster, GE Commercial Finance)(Brief Article)
April 18, 2005... GE Commercial Finance's global media and communications division announced last week that Scott Webster was named senior vice president, origination. He will be tasked with originating and structuring debt transactions in the North American...

Cummins Joins SunTrust From BofA.(Hugh Cummins, SunTrust Banks Inc.)(Brief Article)
April 18, 2005... Last week, SunTrust Banks announced that Hugh Cummins, also known as "Beau" Cummins, was hired as a senior managing director and head of SunTrust Robinson Humphrey Debt Capital Markets, which is a unit of the bank's corporate and investment...

Pucillo To Be Honored By Teaching Foundation.(Christopher Pucillo )(Brief Article)
April 18, 2005... Stanfield Capital Partners' Christopher Pucillo and Kevin Murphy, partner and head of hedge fund strategies and managing partner and director of business development, respectively, will be honored at The National Foundation for Teaching...

Lehman Appoints Nazar As London-Based MD.(Saba Nazar, Lehman Brothers Holdings Inc.)(Brief Article)
April 18, 2005... Lehman Brothers announced last week that it has appointed Saba Nazar as a managing director in the financial sponsors group, which is part of the firm's investment banking division in Europe. Nazar, who will be based in London, will work with...

CLO Investors Should Gauge Asset Overlap Among Vehicles.(collateralized loan obligation)
April 18, 2005... Stricken with stiff competition for paper, a high number of loan prepayments and inflated prices in the secondary market, many collateralized loan obligation (CLO) managers have been forced to invest in the same credits more than once. In fact,...

Ratings Movers: CB Richard Rises/EaglePicher Down On Ch. 11.
April 18, 2005... Commercial real estate provider CB Richard Ellis Services, Inc. was among the list of companies upgraded last week, as Moody's Investors Service boosted the company's bank debt to Ba3 from B1. Moody's pointed to the company's continued...

Credit Swaptions Are On The Rise As Investors Look For Spread.
April 18, 2005... The growth explosion in the credit derivatives market over the past couple of years is no secret to anyone, but to date, there has been little said about the increased volume of credit swaptions (options on single name and index credit default...

LSTA Confab Addresses Ins And Outs Of The Loan Market.(Loan Syndications and Trading Association)
April 18, 2005... The Loan Syndications and Trading Association's (LSTA) 2005 inaugural seminar held last week, which addressed standard documents and market practices for the syndicated and loan trading market, tackled a bevy of complex topics relating to legal...

Issuers Seek Refuge From Wide HY Spreads In Lev. Loan Mart.
April 25, 2005... Last week, Navarre Corp. announced its plans to tap the loan market for a $165 million credit facility to finance, in part, its pending acquisition of FUNimation Productions, Ltd. However, a bank deal apparently wasn't the company's first...

NewStar Hires MDs To Grow MM Biz.(NewStar Financial)
April 25, 2005... The middle market has been an active and fruitful lending ground for both banks and institutional investors over the past few months, and even those lenders who traditionally have not played in this space have been working hard to get a foot in...

Not All Euro PIKs Are Created Equal.(payment-in-kind )
April 25, 2005... Many high yield investors in Europe have shied away from payment-in-kind (PIK) notes deals lately due to the poor secondary market performance of PIKs issued earlier this year. But some investors contend that a few bad apples do not necessarily...

JP Morgan, Lehman Launch $6B Facility For Kerr-McGee.(J.P. Morgan Chase and Co., Lehman Brothers Holdings Inc.)(Brief Article)
April 25, 2005... JP Morgan and Lehman Brothers hit the market Tuesday with a $6 billion bank loan for Kerr-McGee Corp., the proceeds of which will, in part, go to repurchase $4 billion shares of the company's stock in a "Dutch auction," according to a filing...

BioMed Set To Tap Mart For $600M Deal.(BioMed Realty Trust Inc)(Brief Article)
April 25, 2005... BioMed Realty Trust, Inc. announced last week that it has received a commitment from KeyBank National Association for a $600 million credit facility comprised of a $250 million, three-year unsecured revolver; a $100 million, three-year...

Warner Music Seeks Loan.(Brief Article)
April 25, 2005... Warner Music Group Corp. disclosed in a SEC filing last week that it is seeking to increase its term loan by a $250 million term loan to help finance the company's proposed initial public offering (IPO). In April 2004, the company entered into...

Navarre Taps GE CF For Financing.
April 25, 2005... Last week Navarre Corp. announced it is seeking a $165 million credit facility via GE Commercial Finance to finance, in part, its acquisition of FUNimation Productions, Ltd. The facility is comprised of a $25 million, five-year revolver and a...

Price Flex On Carmeuse.(Brief Article)
April 25, 2005... Last week pricing on the credit facility for The Carmeuse Group, a lime and limestone producer, was flexed down to Libor plus 175 bps from Libor plus 200 bps for both tranches of the facility, according to a source. The deal, which is led by...

Few Fallen Angels In Q1 05.
April 25, 2005... A mere seven investment grade issuers slipped to junk status during the first quarter of 2005, but this year could be a record year in terms of the amount of debt falling to speculative grade, as General Motors Corp. (GM) is teetering on the...

S&P Expands Spec. Grade Ratings.(Standard & Poor's Corp.)(Brief Article)
April 25, 2005... Standard & Poor's has begun issuing its new expanded short-term speculative grade ratings, which are designed to represent the ratings agency's opinion of an issuer's creditworthiness within a 12-month period (BLR, 3/28/05). The new ratings -...

Refis Drive Euro Mezz Issuance.(Brief Article)
April 25, 2005... A strong dose of refinancing activity in Europe continued to drive issuance of mezzanine paper in the first quarter of 2005 - despite the issuance of second lien loans, according to a recent report by Fitch Ratings. Overall, European mezzanine...

Leung To Serve As IACPM ED.(International Association of Credit Portfolio Managers, Som-lok Leung.)(Brief Article)
April 25, 2005... On Monday, the International Association of Credit Portfolio Managers (IACPM) will announce thatSom-lok Leung will assume the role of executive director, effective May 9. Leung assumes the role previously held by Michael Robinson, who left the...

Ratings Movers: KCI Up On Low Leverage/SunGard Down On LBO.
April 25, 2005... Kinetic Concepts, Inc.'s (KCI) decrease in leverage led to an upgrade of the company's bank debt by Moody's Investors Service last week. The company's credit facility, which was raised to Ba3 from B1, includes a $100 million revolver and about...

A Look At The Forces Behind: Today's Secured Borrowing Market.
April 25, 2005... By Harold Blatt, marketing manager, Southeast/Atlantic division, Bank of America Business Capital The irrational exuberance of the1990s was followed by a period of falling profits and corporate belt tightening. With sales for many firms...