Bank Loan Report articles from August 2005

Bank Loan Report archives from August 2005

JPM Syndicates $150M DIP For C&A - Vital For Co.'s Liquidity.(J.P. Morgan Chase and Co. for Collins and Aikman Corp.)
August 1, 2005... Bankrupt automotive supplier Collins & Aikman Corp. (C&A) moved one step closer to getting an infusion of liquidity last week, as JPMorgan began selling a $150 million debtor-in-possession (DIP) loan to investors last Wednesday. The deal...

2nd Liens: Distressed's Future Fulcrum'?
August 1, 2005... There's a new player in the debt markets that has yet to be tested in a full credit cycle, one that is notoriously aggressive and unpredictable. This player is the second lien loan. By one estimate, hedge funds now make up perhaps 70% of the...

CEO Pay Linked To Poor Company Credit.
August 1, 2005... In today's post-Enron Corp. world, where skepticism of corporate governance is a routine sentiment, an empirical link found between excessive CEO compensation and increased credit risk may not be too surprising. That said, investors should...

Princeton Advisory Starts CLO Biz, Hires Malecki To Lead Effort.(Paul Malecki)(collateralized loan obligation)(Brief Article)
August 1, 2005... With a few years under its belt in the collateralized debt obligation (CDO) business, three-year old Princeton Advisory Group, Inc. is gearing up to launch its first collateralized loan obligation (CLO). The Princeton, N.J.-based firm, which...

Bear Stearns Shops Aveta Holdings.(Brief Article)
August 1, 2005... Last Tuesday, sole lead Bear Stearns held a bank meeting to launch syndication of a $420 million credit facility for Aveta Holdings, LLC, a new holding company formed by the merger of MMM Holdings, Inc. and NAMM Holdings, Inc. The loan is...

AMI Plans $110M Add-On To TLB.(AMI Semiconductor Inc.'s term loan B)(Brief Article)
August 1, 2005... Last week, Pocatello, Idaho-based AMI Semiconductor, Inc. announced that it is seeking to tack on an additional $110 million to its existing $210 million term loan B. The tack-on would go to finance AMIS Holdings, Inc.'s (AMI's parent company)...

Conseco Seeks Lower Rates.(Brief Article)
August 1, 2005... Last week, Conseco, Inc. announced plans to downsize and lower its rates on its existing bank debt. Conseco entered into an $800 million term loan ($33 million of which has been paid down) in June 2004, for which pricing was set at Libor plus...

RBC In Market With Airxcel Loan.(RBC Capital Markets; Airxcel Inc.)(Brief Article)
August 1, 2005... Last Thursday, Airxcel Inc. tapped the loan market for a $122 million credit facility that consists of a $15 million, five-year revolver, a $75 million, seven-year first lien term loan and a $32 million, seven-and-a-half-year second lien term...

Banks Pitch $900M Vanguard Loan.(Vanguard Car Rental USA Inc.)(Brief Article)
August 1, 2005... Last Thursday, Lehman Brothers, Goldman Sachs, Citigroup, Wachovia Securities and Credit Suisse First Boston began syndicating a $900 million credit facility for Vanguard Car Rental USA, Inc. The facility is split between a $175 million,...

Babson Capital Europe Extends Maturity Of Duchess I CLO.(collateralized loan obligation)(Brief Article)
August 1, 2005... Last week, Babson Capital Europe Ltd. announced that it had extended the maturity of its 1 billion Duchess I collateralized loan obligation (CLO) by four years until 2017. The London-based firm said this was the first time that a European CLO...

Second Lien Fame Slows Down Euro Mezz In Q2.(mezzanine loans)(Brief Article)
August 1, 2005... Despite a healthy appetite for debt financing, European mezzanine issuance slipped by 9% in the second quarter 2005, a phenomenon that Fitch Ratings attributes to the rise of second lien loans, which rose in issuance to 1.8 billion for the...

Toscano Now On LSTA Board.(Dan Toscano member of The Loan Syndications and Trading Association)(Brief Article)
August 1, 2005... Last week, The Loan Syndications and Trading Association's (LSTA) board of directors voted unanimously to approve the nomination of Dan Toscano to serve as Deutsche Bank's representative on the LSTA board. Toscano, a managing director, replaces...

JPM's McGovern Heads To HSBC.(Michael McGovern joins HSBC Securities Inc.)(Brief Article)
August 1, 2005... Last week, HSBC Securities announced that Michael McGovern has been tapped to be managing director and head of syndicated finance for the Americas for HSBC. In his new post, McGovern will be tasked with coordinating and expanding the bank's...

RBS Appoints Cook As SVP In US Loans Biz.(Royal Bank of Scotland PLC hires Ed Cook as senior vice president)(Brief Article)
August 1, 2005... The Royal Bank of Scotland has appointed Ed Cook as senior vice president for the bank's US loan markets business. Cook will be based in New York and will report to Art de Pea, managing director and head of loan sales and trading. Cook was...

Goldman Taps du Parc Barham For Euro Lev. Finance.(Goldman Sachs International Ltd. hires Guy du Parc Barham)(Brief Article)
August 1, 2005... Goldman Sachs International has appointed Guy du Parc Barham as a managing director in its European leveraged finance group in London. He will report to Tim Flynn and Doug Henderson, co-heads of European leveraged finance. Du Parc Barham was...

S&P Appoints Stadnyk To New Post.(Standard and Poor's Corp. has appointed Vladimir Stadnyk)(Brief Article)
August 1, 2005... Standard & Poor's has appointed Vladimir Stadnyk to the role of executive managing director of S&P's data and information services division. He has been at S&P since 1979, and he was previously an executive managing director of securities and...

BofA Hires Schroth.(Bank of America appoints Siobhan Schroth)(Brief Article)
August 1, 2005... For MM Banking In Metro N.Y. Bank of America has appointed Siobhan Schroth to market executive and president of its middle market banking group in Metro New York, which includes New York, Long Island, N.Y., and Westchester County. She...

MLIM Expands Structured Products Division.(Merrill Lynch Investment Managers)(Brief Article)
August 1, 2005... Merrill Lynch Investment Managers (MLIM) recently announced that it is expanding its structured product platform. Merrill is now establishing a team specifically to look for opportunities in the structured products market. The team will be led...

Moody's: Poor SGLs Portend More Default Risk.
August 1, 2005... Last week, Moody's Investors Service published a report suggesting that speculative grade issuers with weak liquidity face higher credit spreads and greater short-term risk of default than other issuers with the same long-term credit ratings,...

Fitch Ratings Rolls Out Recovery, Issuer Default Ratings.
August 1, 2005... Fitch Ratings launched its new recovery ratings ("R") and issuer default ratings (IDRs) products last week. The new ratings will be rolled out during the remainder of 2005, the ratings agency reported, starting with corporate sector ratings,...

Ratings Movers: Western Wireless Rises To I-Grade/Del Labs Down.
August 1, 2005... Western Wireless Corp.'s (WWC) debt shot up to investment grade late last month as a result of the proposed acquisition of the company by Alltel Corp. Moody's Investors Service elevated its ratings on WWC's $300 million revolver, $200 million...

Euro CLO Managers Grapple With High Prepayment Rates.
August 8, 2005... Collateralized loan obligations (CLOs) remain a hot commodity in Europe, as both veteran and first-time managers have launched or are gearing up to launch new vehicles this year. This is in large part due to the positive credit risk profile and...

Movie Theaters Face Pressure From DVDs.(financial pressure)
August 8, 2005... It looks like consumers need to start heading to the movie box office more. Otherwise, the movie theater sector may continue to face negative financial pressure, as competition from the DVD market does not appear to be letting up. With the...

New European Investor Presence Surges.
August 8, 2005... One of the most important developments in the cataclysmic growth of the European syndicated loan market over the past year has been the increased number of active institutional investors there. This is a trend experts say is likely to continue...

Lear's $300M Deal To Provide More Liquidity, Looser Covenants.
August 8, 2005... While General Motors Corp. and Ford Motor Company posted strong sales for July as a result of the recent employee discount sales promotion, automotive suppliers are still feeling the pain of industry pressures, contributing to Lear Corp.'s fall...

Allied Holdings Gets $230M DIP.(from GE Commercial Finance Corporate Lending, Morgan Stanley Senior Funding Inc. and Marathon Asset Management )(Brief Article)
August 8, 2005... GE Commercial Finance Corporate Lending, Morgan Stanley Senior Funding Inc. and Marathon Asset Management have agreed to provide bankrupt vehicle transporter Allied Holdings, Inc. with a $230 million debtor-in-possession (DIP) loan. The loan,...

Lehman Shops Gables Acquisition Loan.(Gables Realty L.P., Lehman Brothers Holdings Inc.)(Brief Article)
August 8, 2005... Gables Realty L.P. is in the market with a $2.125 billion credit facility to help finance its acquisition by ING Clarion Partners. The deal is split between a $300 million, three-year revolver and a $1.825 billion, one-year term loan. Both...

Department 56 Deal Launch Slated For Tuesday.(UBS AG to finance for acquisition of Lenox Inc)(Brief Article)
August 8, 2005... On Tuesday, UBS is scheduled to hold a bank meeting to launch syndication of a $275 million facility in connection with Department 56 Inc.'s acquisition of Lenox Inc. The bank deal is split between a $175 million, five-year asset-based revolver...

Pricing Set For ILC Divi Recap.(ILC Industries Inc., dividend recapitalization )(Brief Article)
August 8, 2005... UBS and GE Capital Corp. held a bank meeting last Tuesday to launch syndication of a $302.5 million credit facility to back Behrman Capital's dividend recapitalization of Bohemia, N.Y.-based ILC Industries, Inc. The facility includes a $30...

EaglePicher Plans To Upsize DIP Loan.(debtor-in-possession loan)(Brief Article)
August 8, 2005... Bankrupt EaglePicher Holdings, Inc. is seeking to increase the size of its interim $50 million debtor-in-possession loan - via lead bank Harris Trust & Savings Bank - by $15 million and extend the deal's maturity to Aug. 1, 2006, the company...

Cannery Casino To Tap Loan Market.
August 8, 2005... In connection with Oaktree Capital Management, LLC's proposed partial acquisition of Cannery Casino Resorts, LLC, Cannery has hired Bank of America to provide a credit facility of up to $300 million, the company said in a statement last week....

SunGard TLB Trades Over 101.(SunGard Data Systems Inc.)(Brief Article)
August 8, 2005... Despite fears that the mega $4 billion institutional tranche to back the leveraged buyout of SunGard Data Systems Inc. wouldn't fare well in the secondary market, the loan has been trading above the 101 context since it broke to trade July 28,...

National Bedding On Downgrade Watch.(Brief Article)
August 8, 2005... Last week, Teachers' Private Capital and Ares Corporate Opportunities Fund, L.P. announced their plan to acquire National Bedding Company, the maker of Serta mattresses. Pricing and structure for the deal were not disclosed, although data from...

LMA Urges Leeway For Banks, Issuers In Case Of Attack.(Loan Market Association)(Brief Article)
August 8, 2005... Last week, the London-based Loan Market Association (LMA) announced that it amended its primary loan documents to include a provision to provide banks and lenders with added flexibility in case of a terrorist attack. The new language gives...

AlixPartners Announces Five New Hires.(Brief Article)
August 8, 2005... AlixPartners, an international corporate turnaround firm, recently announced five new hires for director positions. All will be based in the New York office. Jason Fernstock joins AlixPartners from Sasco Hill Advisors, Inc., a...

Fitch Brings On Matalon, Joshi For HY Group.(Fitch Ratings, Lisa Matalon and Amol Joshi, high yield )(Brief Article)
August 8, 2005... Fitch Ratings announced two new hires last week to its high yield group within its corporates team. Lisa Matalon joins Fitch as a senior director with over 20 years of experience in the capital markets and financial services industry. She was...

BNP Paribas Appoints Morton To Head Oil, Gas, Mining.(Jamie Morton)(Brief Article)
August 8, 2005... BNP Paribas has recently announced the appointment of Jamie Morton to director and head of oil, gas and mining corporate finance for the Americas. Morton will be based in New York and will report to Jean-Michel Doublet, head of corporate...

GE CF Names Kinnaman As MD.(GE Commercial Finance Technology Lending, John Kinnaman)(Brief Article)
August 8, 2005... GE Commercial Finance Technology Lending announced last week that it has named John Kinnaman as managing director. In his new role, Kinnaman will be responsible for overseeing transactions for companies within the technology sector. Previously,...

Gallaway, Cifuentes, O'Connor Join R.W. Pressprich.(Patrick Gallaway, Arturo Cifuentes, Gerard O'Connor)(Brief Article)
August 8, 2005... R.W. Pressprich & Company announced three new hires last week for its sales and trading team. Patrick Gallaway was appointed to head the new structured finance group. He was most recently at Barclays Capital, where he was head of US agency...

Ratings Movers: Carrols Up To B+/Remy Down On Weak EBITDA.
August 8, 2005... Last week, Carrols Corp. was served a three-notch upgrade on its $270 million credit facility by Standard & Poor's after the fast-food franchisee filed overdue financial statements for the first quarter 2005 and for 2004. The company's bank...

Summer Deals Trade Above Par As Demand For Paper Persists.
August 15, 2005... While the primary market calendar for August is thin as the market enters the late-summer lull, there have been a flurry of loans hitting the secondary market. This is as banks have wrapped or are gearing up to wrap up syndication on a number...

Towers: Thriving After Telecom Downturn.
August 15, 2005... After years with astronomical leverage levels and ratings at the lower end of the speculative grade scale, wireless tower companies across the board are looking up, as they are reaping the benefits of currently predictable cash flows and...

Packaging Cos Still Face Pricing Burdens.
August 15, 2005... As exemplified by Anchor Glass Container Corp.'s fall into bankruptcy last week, times have not been easy for the global packaging sector. Raw material pricing pressures in the US and Europe, and limited year-over-year volume growth are central...

Weak Q2, Waiver, Downgrades Cause Blockbuster's Slide.(Brief Article)
August 15, 2005... Blockbuster Inc.'s bank debt tumbled in the secondary market last week after the company posted weak second quarter results, saw its ratings drop and disclosed that it received another amendment to its credit agreement. While the company's...

Herbalife Int'l Mulls Amendment To Loan.
August 15, 2005... Last week, Herbalife Ltd. announced that its indirect subsidiary, Herbalife International, Inc., is considering seeking an amendment to its $225 million credit facility that would allow for the purchase, repurchase or redemption of up to $50...

Ratings Emerge For Triumph Loan.(Triumph Healthcare Second Holdings Inc)(Brief Article)
August 15, 2005... BNP Paribas is in the market with a $270 million credit facility for Triumph Healthcare Second Holdings, Inc. The deal is comprised of a $35 million, six-year revolver, a $140 million, six-year term loan and a $95 million, seven-year second...

Ono Gets Commitments From 16 Banks For LBO Deal.(Brief Article)
August 15, 2005... Last week, Spanish telecommunications company Grupo Corporativo ONO announced that it has signed a commitment letter with 16 banks for a 3.5 billion debt financing in connection with the company's proposed leveraged buyout (LBO) of Auna Tlc. A...

Banks Launch Omnicare Acquisition Financing.
August 15, 2005... Last Thursday, a group of banks led by JPMorgan and Lehman Brothers began shopping an $800 million, five-year revolver and a $700 million, five-year term loan for Omnicare Inc. The revolver is priced at Libor plus 17.5 bps if undrawn and Libor...

Moody's Spec Grade Default Rate Stays At 1.8%.(Moody's Investors Service )(Brief Article)
August 15, 2005... The global speculative grade default rate remained at its eight-year low of about 1.8% percent for July, Moody's Investors Service reported August 5. This is down from 2.4% in January and from 3.1% a year ago, a decline of 44%. Moody's also...

S&P: Few Changes In Issuers' Short-Term Ratings.(Brief Article)
August 15, 2005... Even though the amount of junk-rated debt has more than doubled since April as a result of the downgrades of General Motors Corp. and Ford Motor Company, there has been little volatility in terms of issuers' short-term outlook, Standard &...

Lee Named VP At GE CF.(GE Commercial Finance Technology Lending)(v)(Brief Article)
August 15, 2005... Last week, GE Commercial Finance Technology Lending (GE CF) announced that Paul Lee has been tapped to be vice president, origination. He will be in charge of originating and maintaining relationships with clients in the technology sector, and...

Fitch Assigns Recovery Ratings, IDRs To Corporates.(Brief Article)
August 15, 2005... Fitch Ratings announced last week that it has assigned its new recovery ratings and issuer default ratings (IDRs) products to all North American corporates rated B+ and below. The new ratings apply to $200 billion of loans and securities,...

Burke Appointed To Head KeyBank Real Estate Capital.(E.J. Burke )(Brief Article)
August 15, 2005... KeyCorp announced last week that E.J. Burke has been named to lead the firm's KeyBank Real Estate Capital line of business. Burke, who replaced George E. Emmons, Jr. (who was promoted to lead KeyCorp's Community Bank), will retain his title of...

Ratings Movers: Pantry's Up On Waiver/Sirva's Down On Late 10-K.
August 15, 2005... The Pantry, Inc. had a good week last week, as its bank debt was upgraded by Standard & Poor's to B+ after the company announced it received a waiver from its lenders that put it back in compliance with the covenants of its loan agreement. Last...

Leveraging The Earnings Repatriation Tax Incentive With An ABL.
August 15, 2005... by Robert C. Rubino, executive vice president, northeast division, Bank of America Business Capital, and Carmen Bernardis, managing director, Bank of America Business Capital Europe There are few opportunities that truly come around just...

Loan Market Applauds Owens Corning Reversal, Loans Trade Up.
August 22, 2005... Players in the syndicated loan market breathed a collective sigh of relief last week after the US Third Circuit Court of Appeals unanimously reversed a ruling that would have allowed substantive consolidation in the Owens Corning bankruptcy...

Vanguard Car Rental Shelves Divi Deal.
August 22, 2005... Last week, Vanguard Car Rental USA, Inc. and its sponsor, Cerberus Capital Management, postponed an already-reduced $800 million dividend bank deal that was said to have been poorly received by investors. The rationale behind the delay is to...

The Energy Policy Act: Blessing Or Bane?
August 22, 2005... The Energy Policy Act signed into law by President George W. Bush earlier this month appears on the surface to be essentially a gift bag full of tax incentives for the power industry, but some observers note that in the long term, the new...

Wachovia, CapitalSource Tapped For Beverly Buyout Financing.
August 22, 2005... In connection with the announced acquisition of elderly health care provider Beverly Enterprises, Inc. by North American Senior Care, Inc. (NASC), Wachovia Bank and CapitalSource Financing LLC have been tapped to together provide $1.875 billion...

UBS Pitches Sterigenics.(Collateralized debt obligations)(Brief Article)
August 22, 2005... UBS is shopping a $217 million term loan for Sterigenics International Inc. that will roll the company's existing $35 million second lien loan into the first lien tranche. The company's existing facility is comprised of a $180.5 million first...

Ameristar In Market For $1.2B Loan.
August 22, 2005... Last week, Deutsche Bank and Wells Fargo launched syndication of a $1.2 billion credit facility for Las Vegas-based Ameristar Casinos, Inc. The deal is comprised of an $800 million, five-year revolver and a $400 million, seven-year term loan B....

Pre-Labor Day Launch Slated For Eastman Kodak Loan.
August 22, 2005... Citigroup is slated to launch syndication of a $2.7 billion credit facility for recent fallen angel Eastman Kodak Company, according to a source familiar with the deal. The new facility will include a five-year revolver in the amount of $1...

Anchor Glass Gets More DIP Financing.
August 22, 2005... Last week, bankrupt Anchor Glass Container Corp. announced that it had secured as much as $130 million in debtor-in-possession (DIP) loans following its Chapter 11 filing on August 8 (BLR, 8/15/05). In addition to a revolver of up to $115...

NewStar Completes First CLO.(NewStar Financial Inc)(Collateralized debt obligations)(Brief Article)
August 22, 2005... Boston-based NewStar Financial Inc. announced earlier this month that it priced NewStar Trust 2005-1 CLO, a $375 million collateralized loan obligation (CLO) that is secured by a portfolio of middle market, real estate and structured loans...

Moody's Withdraws Issuer Rating For EMEA Cos.(Europe, the Middle East and Africa )(Brief Article)
August 22, 2005... Last week, Moody's Investors Service withdrew its issuer ratings for about 120 speculative grade corporate issuers based in Europe, the Middle East and Africa (EMEA). The withdrawal of these ratings follows a decision earlier this year to...

Sensient Gets New Revolver.(Sensient Technologies Corp. get loan from Bank One Corp.)(Brief Article)
August 22, 2005... Sensient Technologies Corp. announced last Thursday that it has attained a new unsecured $225 million revolver that will replace the Milwaukee-based manufacturer of colors, flavors and fragrances' existing $150 million credit facility. The...

GGOF Launches New Floating Rate Fund.(Guardian Group of Funds Ltd)(Brief Article)
August 22, 2005... Toronto-based Guardian Group of Funds Ltd. (GGOF) announced last week that it has launched a new fund, GGOF Floating Rate Income Fund, a mutual fund that plans to achieve gains by entering into interest rate swaps, credit default swaps and...

Fitch Upgrades SERVES 1999-5 CLO.(Structured Enhanced Return Vehicle Trust)(Brief Article)
August 22, 2005... On August 12, Fitch Ratings upgraded Structured Enhanced Return Vehicle Trust's $95 million notes, series 1999-5 (SERVES 1999-5) to BBB+ from BBB. The upgrade was given on account of SERVES' significant build-up of trust assets and its...

FrontPoint Hires Fox For Ivory Capital Team.(Brief Article)
August 22, 2005... FrontPoint Partners LLC announced last week that it has hired Christopher S. Fox to join the $5.4 billion Greenwich, Conn.-based hedge fund's Ivory Capital Group, LLC investment team, effective January 1, 2006. Based in New York, Fox and Ivory...

BofA BC Hires Gupta From GE CF.(appointments )(Brief Article)
August 22, 2005... Bank of America Business Capital (BofA BC) announced that Neeraj Gupta has joined the bank as vice president and senior business development officer for the Mid-Atlantic region. Gupta will be located in the New York office and will be...

S&P: Network TV Risks May Outweigh Growth Opportunities.
August 22, 2005... It looks like several increasing business risks exist for the major television networks, according to an August 9 report published by Standard & Poor's. These include media fragmentation, technology threats, cost pressures and changes in...

Ratings Movers: Compass Minerals Up/Leiner Down On Low Profits.(Merrill Communications LLC)
August 22, 2005... Standard & Poor's recently dealt Compass Minerals Group Inc.'s bank debt a two-notch upgrade as a result of improving recovery prospects due to the company's reduction of its term loan over the past few years - only $17.6 million remains on its...

Fed Survey Finds Banks Are Still Loosening Lending Standards.
August 22, 2005... Market conditions just keep getting better for commercial borrowers, according to the The Federal Reserve Board's July Senior Loan Officer Opinion Survey on Bank Lending Practices, released last week. The survey provided evidence that further...

Summer Publishing Break.
August 22, 2005... Bank Loan Report will be on publishing break through the remainder of August into the beginning of September, and there will be no BLR publications for the dates of August 29 and September 5. Expect the next issue of BLR to be in print on...