Bank Loan Report articles from January 2005

Bank Loan Report archives from January 2005

Not Much Change Seen For Loan Market, But Refis Could Decrease.
January 10, 2005... There might be little that is actually new about this New Year for players in the leveraged loan market, who are expecting another year of low default rates, tight spreads and high demand for loan issuance. In fact, any major jolts to the...

Healthy CLO Issuance Expected To Continue.(collateralized loan obligation)
January 10, 2005... Barring a catastrophic event, it looks as though the robust level of US collateralized loan obligation (CLO) issuance seen in 2004 should continue well into 2005, several market constituents agree. Thats because all the ingredients for robust...

Record Volume For US Syn Loan Mart In 04.(syndicated)
January 10, 2005... It appears that 2004 was a record year for US syndicated loan issuance, signifying the robust growth of the asset class over recent years. Indeed, 2004s loan volume total shattered all previous totals for US syndicated loan volume on record...

Wyle Labs In Market To Back General Dynamics Acquisition.(Wachovia Securities and Credit Suisse First Boston to provide financing )(Brief Article)
January 10, 2005... Wachovia Securities and Credit Suisse First Boston hit the market last Thursday with a $180 million credit facility to finance Wyle Laboratories acquisition of General Dynamics Advanced Information Systems aeronautics services business. ...

Wachovia Launches Enterprise NewsMedia Refinancing.(Wachovia Corp.)(Brief Article)
January 10, 2005... Last Thursday, Wachovia also brought to market a $100 million refinancing for Enterprise NewsMedia. The deal includes a six-year, $25 million revolver priced at 300 bps above Libor and a seven-and-a-half year, $75 million term loan B priced at...

JP Morgan, Bear Stearns Take Del Labs To Market.(Del Laboratories)(J.P. Morgan Chase and Co.)(Kelso and Company Inc.)(Bear Stearns Companies Inc.)(Brief Article)
January 10, 2005... JP Morgan and Bear Stearns launched syndication last week of a $260 million credit facility in connection with investment firm Kelso & Companys $410 million leveraged buyout (LBO) of Del Laboratories. The credit facility includes a...

Deutsche Bank, CSFB, Lehman Launch Intelsat LBO.(Lehman Brothers Holdings Inc., leveraged buyouts)(Brief Article)
January 10, 2005... Last Thursday, Deutsche Bank, CSFB and Lehman Brothers launched syndication of a $650 million credit facility in connection with the $5 billion LBO of global satellite communications company Intelsat, Ltd. According to a source, the deal...

CIBC, BofA JP Morgan Syndicate ACS.(CIBC World Markets, Bank of America, J.P. Morgan Chase and Co., Alaska Communications Systems Group Inc.)(Brief Article)
January 10, 2005... CIBC World Markets, Bank of America and JP Morgan launched syndication last week of a $385 million credit facility for Alaska Communications Systems Group (ACS). The company also plans to sell $75 million in stock. The loan deal includes a...

Rayovac to Acquire United Industries, Bank Deal Expected.(United Industries Corp.)(Rayovac Corp.)(Brief Article)
January 10, 2005... In connection with its acquisition of United Industries Corp., Rayovac Corp. will go to the market with a credit facility totaling about $1.2 billion. The facility includes a $300 million, six-year revolver; a $740 million, seven-year term loan...

Kisting Joins Qua As Co-Head Of Merrills Global Bank Group.(John Qua)(Scott Kisting)(Merrill Lynch Global Bank )(Brief Article)
January 10, 2005... Merrill Lynch announced last week that 33-year banking industry veteran Scott Kisting will co-head the firms global bank group with John Qua. The group manages a range of private client and institutional banking activities worldwide. In...

KDP Adds Staffers As It Plans To Expand Into Loans, Derivatives.(KDP Investment Advisors)
January 10, 2005... KDP Investment Advisors, a Montpelier, Vt.-based high yield research firm, has brought on some new staffers to its team who will help fill the staffing voids left late last year after previous employees had departed the firm. In addition, the...

Wishing You Peace On Earth And Fewer Refis.(INGs Senior Debt Group)(Brief Article)
January 10, 2005... And happy holidays to you, too. The folks at INGs Senior Debt Group sent their colleagues in the loan market a little more than the traditional Seasons Greetings note this past holiday season. Enclosed in their holiday card sent to...

PanAmSat Takes Another Shot At Repricing In Light Of IPO.(PanAmSat Holding Corp., Initial public offerings)
January 17, 2005... It didn't take PanAmSat Holding Corp. and its lead bank Citigroup long to come to market for the second time with a repricing proposal - which emerged earlier this month- for its $1.66 billion term loan B. The company emerged with its first...

GoldenTree: Innovative In Challenging Mart.(GoldenTree Asset Management)
January 17, 2005... Today's loan market conditions - tight Libor spreads, inadequate loan supply to meet demand and an unusually high number of refinancings - are not exactly ideal for institutional loan investors. But GoldenTree Asset Management doesn't seem to...

Bet On More Native American Gaming Deals.
January 17, 2005... A significant amount of Native American gaming financings and issuers have emerged in the debt markets during recent years and it looks like even more of these issuers are expected to tap the debt-investment community in the future. That's in...

Goldman Staffers Give Notice Of Their Impending Departures.(The Goldman Sachs Group Inc.)(Brief Article)
January 17, 2005... The 2005 post-bonus departure season has kicked off at Goldman Sachs, where sources say a few top members of the firm's loan capital markets group have given notice of their departures. Incidentally, bonuses were awarded last week as well,...

Wells Fargo Shops Complete Energy Services.(financial transaction)(Brief Article)
January 17, 2005... Wells Fargo hit the market with a $190 million facility for Complete Energy Services last Thursday, according to an investor. The credit comprises a $140 million term loan priced at Libor plus 325 basis points (bps) and a $50 million revolver...

Goldman Syndicates Maxim Crane Exit Line.(Goldman Sachs and Co., Maxim Crane Works)(Brief Article)
January 17, 2005... Goldman launched syndication of an exit deal for Maxim Crane Works last Tuesday. The $330 million deal, which was well oversubscribed on all tranches by last Thursday, includes a $180 million first lien term loan B, a $100 million second lien...

RBS Launches Oreck Recap.(Royal Bank of Scotland PLC)(Brief Article)
January 17, 2005... The Royal Bank of Scotland launched syndication last Thursday of a $210 million dividend recapitalization deal for Oreck Corp. The deal includes a $190 million, seven-year term loan B and a $20 million, six-year revolver, with both tranches...

Envirocare Enters Market.(Calyon loans Envirocare of Utah)(Brief Article)
January 17, 2005... Last Tuesday, Calyon launched syndication on a $340 million credit facility for Envirocare of Utah. The facility is said to include a $10 million, five-year revolver and a $330 million, five-year term loan B. Price talk for both the revolver...

BNP Paribas, BoNY Launch CamelBak.(BNP Paribas S.A., Bank of New York, CamelBak Products)(Brief Article)
January 17, 2005... BNP Paribas and Bank of New York came to market last week with a $155 million credit facility for CamelBak Products, a Petaluma, Calif.-based company that sells outdoor gear. The credit includes a $20 million, six-year revolver; a...

Wente Returns to GE CF.(David Wente, GE Commercial Finance)(Brief Article)
January 17, 2005... David Wente is returning to GE Commercial Finance Corporate Financial Services (GE CF) as managing director of business development, the firm announced last week. He will be responsible for acquisitions that complement GE CF's global media and...

Fitch Reorganizes Bank Group, Staff.(Brief Article)
January 17, 2005... Last week, Fitch Ratings announced that Ian Linnell was tapped to be head of the Europe, Middle East and Africa (EMEA) bank group, which was one of a handful of staff changes in connection with a reorganization of the rating agency's bank...

Array Of Factors Impact Recovery of Defaulted Bonds, Loans.
January 17, 2005... A variety of macroeconomic, firm-specific and industry-specific factors impact the recovery rate of defaulted loans and bonds, according to a recent report by Moody's Investors Service, which reviews the determinants of defaulted loans and...

Merrill Lynch Claims Number One Spot In CDO League Tables.(collateralized debt obligation, Merrill Lynch and Company Inc.)
January 17, 2005... After more than tripling its total underwriting volume from the previous year, Merrill Lynch ran away with the lead spot in the US collateralized debt obligation (CDO) league tables for 2004, according to data maintained by Thomson Financial....

Extra, Extra! Newspapers Still Face Ad Revenue Pressure.
January 17, 2005... The outlook for the US newspaper publishing industry this year is one of cautious optimism, Standard & Poor's analyst Donald Wong wrote in a recent report. That's because the industry is subject to continued pressure on advertising revenue that...

Second Lien Loans A Hit In '04, But How Will They Fare In 05?
January 24, 2005... Last year was certainly a banner year for second lien loan issuance, especially considering that there were more second liens issued in 2004 than in the past seven years combined. And market players expect the debt product to maintain its...

Banks Looking To More Spec-Grade CDS.(credit default swap)
January 24, 2005... It looks like the extremely tight spread levels seen on leveraged debt these days is causing a rise in credit derivatives activity related to speculative grade issuers. That's because lenders of leveraged debt are no longer getting adequate...

Kurron: Health Care Restructuring Pros.(Kurron Shares of America)(Interview)
January 24, 2005... Some have called Corbett Price a businessman with angel's wings. That's because Price's line of work - health care restructuring - could be considered heaven-sent, especially in today's tough business world. Price, who sat down with BLR to...

LSTA Appoints New Board Members, Throws Gala.(Loan Syndications and Trading Association)
January 24, 2005... The Loan Syndications and Trading Association (LSTA) held its annual membership meeting last Thursday, at which time new chairs, a new treasurer and nine new members to the LSTA's board of directors were elected. There was also a post-meeting...

JPM, UBS To Shop PQ This Week.(J.P. Morgan Chase and Co. and UBS Holding to held a bank meeting to finance PQ Corp.)(Brief Article)
January 24, 2005... JP Morgan and UBS are scheduled hold a bank meeting today to launch a $410 million credit facility for PQ Corp. In December, the Berwyn, Pa-based company announced it was being acquired by the private-equity arm of JP Morgan; the transaction is...

DynCorp Buyout Credit Hits Market.(DynCorp International L.L.C., Veritas Capital Inc.'s acquisition)
January 24, 2005... Goldman and Bear Stearns hit the market last Wednesday with a $420 million credit facility to finance DynCorp International's acquisition by Veritas Capital. The facility includes a $75 million, five-year revolver and a $345 million, six-year...

Deutsche Bank, BofA Syndicate FairPoint's New Line Alongside IPO.(Deutsche Bank AG (Frankfurt, Germany), BankAmerica Corp., FairPoint Communications Inc.)(Brief Article)
January 24, 2005... In connection with the company's planned $475 million initial public offering (IPO) of its common stock, Deutsche Bank and BofA launched syndication last week of a $690 million credit for FairPoint Communications, a rural telecommunications...

Eye Care Centers Appears With New Facility.(Eye Care Centers of America Inc., J.P. Morgan Chase and Co.'s credit)(Brief Article)
January 24, 2005... In connection with the LBO of Eye Care Centers of America, JP Morgan launched syndication of a $190 million credit facility for the company last Wednesday. The deal is said to include a $25 million, five-year revolver and a $165 million,...

Builders FirstSource Back With Another Divi Recap.(dividend recapitalization, UBS AG and Deutsche Bank AG (Frankfurt, Germany) credits)(Brief Article)
January 24, 2005... UBS and Deutsche Bank launched syndication last Friday of a dividend recapitalization for Builders FirstSource (BFSI). Based in Dallas, BFSI is a supplier and manufacturer of building products and a portfolio company of private equity firm JLL...

Moody's: US Steel Should Remain Stable In 2005.(Moody's Investors Service)
January 24, 2005... The US steel industry is expected to maintain a stable credit rating outlook for 2005, said Moody's Investors Service in a recent report. This is positive news when compared with the industry's more volatile past. "The turbulence experienced in...

Ratings Movers: GNC Up After Repay/NAEP Down As Breach Looms.(General Nutrition Centers, North American Energy Partners, Vulcan Energy Corp.)
January 24, 2005... General Nutrition Centers (GNC) was in the upgrades column last week as Standard & Poor's raised its $360 million credit facility to B+ from B. Earlier this month, Moody's Investors Service also upgraded the company's loan to B1. S&P said...

More CDO Managers Likely To Set Up Shop In Europe This Year.(collateralized debt obligations)
January 31, 2005... In 2004, a flurry of collateralized debt obligations (CDOs) came into being in the US. Now, while they continue to keep busy in the US, several investment management firms are setting roots down in Europe where, they say, there are many...

Leveraged Market Bids Adieu To Nextel.(Nextel Communications Inc.)
January 31, 2005... It looks like the Nextel Communications name will be exiting the funds of several institutional leveraged loan investors in the near future, if it hasn't already. That's because the company is looking to complete a new term loan with ultratight...

Babson's Upbeat About 2005 Euro Market.(Babson Capital Management)
January 31, 2005... The loan team at Babson Capital Management has seen some major changes over the past year - changes that vice chairman, head of corporate securities, Roger Crandall, believes will further boost the firm's growing loan business in both the US...

UBS Set To Launch NewQuest Health Solutions LBO Credit.
January 31, 2005... UBS is poised to launch syndication of a $165 million credit facility for NewQuest Health Solutions this Thursday. The facility will, in part, back the leveraged buyout of the company by GTCR Golder Rauner, a Chicago-based private equity firm....

ABL Deal Emerges For American Commercial Lines.(Brief Article)
January 31, 2005... UBS launched syndication last Tuesday of a five-year, $225 million asset based revolver for American Commercial Lines LLC (ACL). The revolver is said to be priced at about 250 bps over Libor. ACL also announced that it plans to offer $200...

Bank Meeting Soon For Masonite LBO Line.(Bank of Nova Scotia )(Brief Article)
January 31, 2005... The Bank of Nova Scotia is expected to hold a bank meeting during the first half of February for a $2.35 billion deal to support Kohlberg Kravis Roberts & Co.'s (KKR) buyout of Mississauga, Ontario, Canada-based Masonite International Corp. KKR...

CamelBak Second Lien Three Times Oversubscribed.(Brief Article)
January 31, 2005... Syndication closed last week on the $152 million facility for CamelBak Products, whose second lien loan was said to be three times oversubscribed and whose first lien was said to be one-and-a-half times oversubscribed, according to a source....

Banks Grant Krispy Kreme Two-Month Extension.(Krispy Kreme Doughnut Corp.)(Brief Article)
January 31, 2005... Krispy Kreme Doughnuts announced last week that its lenders granted the company until March 25 to file its financial results from the third quarter 2004 - a move that delayed a potential default by two months. This is the second time this month...

MD Beauty Divi Recap To Launch Today.(Brief Article)
January 31, 2005... BNP Paribas was scheduled to hold a bank meeting today to launch syndication of a $222 million dividend recapitalization for MD Beauty. Equity firms Berkshire Partners and JH Partners control the company; they expect to receive a $100.8 million...

HealthSouth To Refinance.(Brief Article)
January 31, 2005... JP Morgan and Wachovia are slated to launch syndication this week of a $715 million refinancing for HealthSouth Corp., according to a source. The deal is said to include a five-year, $250 million revolver; a five-year, $150 million term loan A;...

Banks Lead Worldspan Refi.(Brief Article)
January 31, 2005... Worldspan LP and WS Financing Corp. went to market last Thursday with a $440 million refinancing, comprised of a $400 million, five-year term loan and a $40 million, five-year revolver. Price talk for both the revolver and term loan is at Libor...

Fitch, Moody's Rate Fidelity Recap Facility.(Fidelity National Information Services )(Brief Article)
January 31, 2005... Fitch Ratings and Moody's assigned equivalent ratings of BB- and Ba3, respectively, to the proposed credit facility for Fidelity National Information Services (FIS), a subsidiary of Fidelity National Financial (FNF). The $3.2 billion...

Moody's: Loan Defaults Declined 59% Last Year From '03.(Brief Article)
January 31, 2005... While there were significantly fewer syndicated bank loan defaults in 2004 than 2003, Moody's predicts that the number of defaults will rise in the second half of this year, according to a recent report. Nineteen issuers defaulted on about...

Goldman Unites Financing And Investment Banking Groups.(The Goldman Sachs Group Inc.)(Brief Article)
January 31, 2005... Goldman Sachs has merged its financing group with its investment banking division, according to a January 20 internal memo obtained by BLR. The move "will combine the very best advice for our clients with world class execution and the broadest...

MM Lending Firm, ORIX USA, Expands Services.
January 31, 2005... ORIX USA Corp. has expanded its capabilities through the formation of a corporate finance group. The group will provide credit products and creative financing solutions to corporate customers in specific market segments, the firm reported. ...

Bartlam To Retire From Intermediate Capital.(Brief Article)
January 31, 2005... Intermediate Capital Group (ICG) announced last week the expected retirement in April of its founder and managing director, Tom Bartlam. After he retires, Bartlam will remain on the board as a non-executive director. "Under the guidance of...

European Chemical Companies Face Macro Concerns In 2005.(Brief Article)
January 31, 2005... Despite an upturn in 2004, the European chemical sector will only chug along this year, as it faces ongoing macro concerns, experts at Standard & Poor's in London wrote in a recent report. "Profitability continues to be burdened by...

Ratings Movers: DIRECTV Up /RJ Tower Down On Liquidity Crunch.
January 31, 2005... The bank loan ratings of DIRECTV Holdings LLC (DIRECTV), a 100% owned subsidiary of The DIRECTV Group, were boosted by Moody's Investors Service last week as part of a review following The DIRECTV Group's sale of its 80.5% stake in PanAmSat...