Bank Loan Report articles from July 2006

Bank Loan Report archives from July 2006

European Auto Makers Expected To Face Smoother Road Ahead.
July 3, 2006... While the woes of the US automobile industry show no sign of abating, investors are looking for hopeful signs across the Atlantic, as market sources say the European auto sector, despite some profitability issues, is in far stronger shape than...

Moody's Finalizes New Rating Methodology.
July 3, 2006... As proposed in January 2006, Moody's Investors Service announced that it is finally set to implement new assessments and ratings on all nonfinancial speculative grade issuers. The changes, set for implementation in September, will...

Six Flags Announces Expected Shortfalls.
July 3, 2006... Standard & Poor's put the B- corporate credit rating of theme park operator Six Flags on negative watch last week after managers announced in a conference call that the company would likely not meet its guidance for the second quarter, and that...

Hertz Hits Dead End With Repricing Proposal; PEs Plan Dividend.(Hertz Corp.)(Deutsche Bank AG)(Oglebay Norton Co.)(J.P. Morgan Chase and Co.)(TriMas Corp.)
July 3, 2006... The Hertz Corp.'s repricing plans hit a dead end last week, causing lead bank Deutsche Bank to pull back on the proposal, according to a source. Deutsche Bank had aimed to lower interest rates by 25 basis points (bps) on Hertz's $293 million...

IntraLinks/iSiD To Offer Platform For Japanese Loan Market.(Information Services International-Dentsu)(IntraLinks Inc.)
July 3, 2006... Just as the Japanese loan syndication market has begun to hit its stride, online workspace provider IntraLinks and Japan-based technology consulting firm Information Services International-Dentsu (iSiD) have collaborated to offer a...

New Derivative Product Cos To Bring Fresh Liquidity To Market.
July 3, 2006... While derivative product companies (DPCs) - essentially highly rated swap counterparties - have been around for years, what is new to the market is the surge in the number of such entities in the pipeline, market participants say. Industry...

Ratings Movers: Allied Security Firms Up/Ozburn Falls On Acqs.
July 3, 2006... Receiving a boost from Moody's Investors Service last week was King of Prussia, Pa.-based Allied Security Holdings, as the rating agency upgraded approximately $550 million of the company's debt. Moody's upgraded the company's proposed amended...

Babson Capital Closes Seventh CLO, Upsized Babson CLO 2006-I.(collateralized loan obligations)
July 3, 2006... Babson Capital Management closed a $575 million collateralized loan obligation (CLO) vehicle last month. The transaction, Babson CLO 2006-I, is one of the larger funds offered in recent months, upsized from $500 million, and Babson's seventh...

Robust Loan Volume Seen So Far Set To Continue Through Year-End.(Statistical data)
July 10, 2006... The US leveraged loan market has had a gangbusters first-half 2006, as M&A- and buyout-related financing activity has maintained its frenetic pace. In fact, US leveraged loan volume so far in 2006 has surpassed that of 2005's first half by $59...

Barclays Tops 1H Euro Loan Rankings.(Barclays Capital)
July 10, 2006... It's been a great half-year thus far for Barclays Capital's European leveraged lending business: The firm topped the first half 2006 European leveraged loan league tables with a massive $22.214 billion in loan volume, according to data from...

PAG To Manage First Synthetic CLO.(Princeton Advisory Group)(Collateralized loan obligations)(Canal Point I)
July 10, 2006... Princeton, N.J.-based asset manager Princeton Advisory Group (PAG) is gearing up to act as investment advisor to the synthetic collateralized loan obligation (CLO) Canal Point I, which was looking to close at least $30.5 million of Class A...

Bankruptcy Management Solutions Secures Deal To Back Buyout.
July 10, 2006... Bankruptcy Management Solutions (BMS) has secured a $360 million bank credit facility, including a $15 million revolver, according to an investor. The facility will fund the purchase of BMS from Lincolnshire Management for $385 million, along...

Mylan Seeks Revolver.(Mylan Laboratories finance)(Brief article)
July 10, 2006... Generic pharmaceutical company Mylan Laboratories announced a proposed $700 million senior unsecured revolving credit facility on July 3. The deal includes an accordion feature that could increase the size of the deal to $1 billion. ...

Bank Duo Shops Triumph HealthCare.(Bear Stearns)(BNP Paribas)
July 10, 2006... Bear Stearns and BNP Paribas are in the market with a $395 million credit facility consisting of a seven-year, $250 million first lien term loan, a six-year, $35 million revolver and an eight-year, $110 million second lien term loan for Triumph...

Allied Gets Fifth DIP Amendment.(Allied Holdings)(debtor-in-possession)
July 10, 2006... Allied Holdings has obtained an interim order to enter into a fifth amendment to its senior secured, super priority, debtor-in-possession (DIP) credit facility, arranged by Marathon Structured Finance, GE Capital, and Morgan Stanley. The...

Granite Gains Line To Payoff Notes.(Granite Broadcasting Corp.)(Brief article)
July 10, 2006... Granite Broadcasting Corp. announced that it has entered into a new senior credit facility that will provide two secured loans - a $40 million term loan A and a $30 million convertible term loan B. The term loan B will be convertible in the...

Hicks Takes GECF Northeast Helm.(Randy Hicks)(GE Commercial Finance)(Brief article)
July 10, 2006... GE Commercial Finance announced new leadership at its Northeast region manager level of its North American corporate lending business. Randy Hicks, who has more than 13 years of sales leadership roles in GE's corporate lending and commercial...

Babson Closes First Euro Mezz Fund.(Babson Capital Europe)(Brief article)
July 10, 2006... Babson Capital Europe announced last week that it has held the final closing of its first dedicated European mezzanine fund, the 800 million Almack Mezzanine I LP. This announcement follows a first close in November 2005, at 251 million. The...

Bridge Finance Appoints Appleton.(Bridge Finance Group)(Jeffery W. Appleton)(Brief article)
July 10, 2006... Chicago-based Bridge Finance Group announced that Jeffery W. Appleton has been appointed director of the company's Atlanta office. Appleton was most recently in charge of the Atlanta office as vice president for Siemens Financial Services'...

Automating Treasury Management Services To Maximize Liquidity.
July 10, 2006... by Jay Kane, senior vice president, global treasury services, Bank of America Business Capital Electronic treasury management solutions are giving asset-based borrowers efficient new ways to control and manage their cash. Company...

Ratings Movers: Quality Distribution Up/CA Drops To Speculative.(Quality Distribution Inc.)(CA Inc.)
July 10, 2006... Moody's Investors Service raised all of the debt ratings for tank truck operator Quality Distribution - a move that affected approximately $350 million of debt. Among the upgrades, the Tampa, Fla.-based company's senior secured bank facility...

Strong Second Lien Issuance Persists, But Road Bumps Are Forming.
July 17, 2006... US second lien loan issuance through the second quarter 2006 appeared to remain robust, as top second lien providers continued to issue the debt product to masses of corporate borrowers. Credit Suisse maintained its hold at the top of the...

Oil And Gas Bank Financings On The Rise.
July 17, 2006... With the arrival of the 2006 hurricane season, oil and gas production is at constant risk of disruption. Yet despite the looming threat of a disturbance caused by Mother Nature, oil and gas companies are still facing a steady stream of...

Views Mixed On Rating Agency Reform Plan.(The Credit Rating Agency Duopoly Relief Act of 2006 )
July 17, 2006... Debt market participants had a mixed reaction last week to the passage of a bill seeking to overhaul rating agency regulation through the US House of Representatives. The Credit Rating Agency Duopoly Relief Act of 2006 (HR 2990), which has been...

Credit Suisse Shops $485M Deal To Back Apollo Purchase Of Verso.
July 17, 2006... Credit Suisse is arranging a new $485 million credit facility to finance the acquisition of Verso Paper Holdings. The deal includes a $200 million revolver and a $285 million term loan B; both tranches are priced at Libor plus 200 basis points...

UBS Shops Sewing Co. Deal.
July 17, 2006... UBS launched syndication last Tuesday of a $315 million senior secured credit facility for sewing machine company SVP Worldwide. The facility, consisting of a $75 million revolver and a $240 million term loan, will be used to refinance existing...

Razor Co. In Market With Refi.(American Safety Razor Co. )(Brief article)
July 17, 2006... Sole lead arranger UBS launched syndication of a senior secured credit for American Safety Razor Co. (ASR) on Tuesday, July 11, as part of a credit refinancing for the company. A source close to the deal said the $435 million facility includes...

Bank Duo To Syndicate TelePacific Credit.(TelePacific Communications)(Credit Suisse Group)(Bank of America)(Brief article)
July 17, 2006... Los Angeles-based TelePacific Communications announced plans to issue a $30 million revolver and a $175 million first lien term loan. The new facilities, arranged by Credit Suisse and Bank of America, along with $10 million in additional...

El Paso Seeks Facilities Via Separate Bookrunners.( JPMorgan )
July 17, 2006... El Paso Corp. is issuing separate bank lines via separate lead arrangers. The B1-rated energy company is issuing a $500 million revolver via lead Deutsche Bank, while it is also seeking a $1.25 billion, three-year revolver, priced at Libor plus...

Barclays, DrKW Lead Duquesne Financing.(Dresdner Kleinwort Wasserstein)(Duquesne Light Holdings Inc.)(Barclays Capital Inc.)(Brief article)
July 17, 2006... Barclays Capital and Dresdner Kleinwort Wasserstein (DrKW) announced their positions last week as lead arrangers and bookrunners to finance $1.445 billion in debt for the $3.15 billion acquisition of Duquesne Light Holdings by Macquarie...

Fitch Introduces CLO Recovery Ratings.
July 17, 2006... Last Thursday, Fitch Ratings announced the publication of an exposure draft on new methodology to incorporate recovery ratings for collateralized loan obligations (CLOs). In the last several years, Fitch has introduced recovery ratings for...

NAC Builds London Team.(New Amsterdam Capital )(Brief article)
July 17, 2006... London-based New Amsterdam Capital (NAC), the specialist investment firm, announced five additions to its London team last week. Among the new hires are Peter Hurd and Richard Lee, who are joining the investment team as executive directors....

GE Commercial Finance Appoints Pierson.(Stephen Pierson )(Brief article)
July 17, 2006... GE Commercial Finance announced last week the appointment of Stephen Pierson as senior vice president industry leader of aerospace and defense for its corporate lending business. Pierson, who will be based in Norwalk, Conn., was most recently a...

Dahlman Rose Hires Silverman.(Dahlman Rose & Co)(Jeffery T. Silverman )(Brief article)
July 17, 2006... Dahlman Rose & Co., a boutique investment bank specializing in marine transport, energy, natural resources and related industries, announced last week that Jeffery T. Silverman will join as managing director in the newly created leveraged...

Two New Partners Join Bracewell & Giuliani.(Bracewell and Patterson L.L.P.)(Brief article)
July 17, 2006... Bracewell & Giuliani has expanded its New York office to include 27 lawyers following the addition of four new hires. Among the new hires are two partners, David C. Albalah, specializing in bankruptcy and corporate restructuring, and Julian...

CIT Selects Allweiss For Midwest Post.(Allan Allweiss)(CIT Group Inc.)(Brief article)
July 17, 2006... CIT Group announced last week that Allan Allweiss was appointed executive vice president and Midwest regional manager for its CIT Business Capital unit. In his new role, Allweiss will be based in Chicago, and be responsible for business...

Ratings Movers: PGS Rigs Move Up/Oriental Trading Down On LBO.
July 17, 2006... Geophysical services company Petroleum Geo-Services ASA (PGS) saw its bank debt move up one ratings notch and cross into double-B territory last week, as Standard & Poor's raised its senior secured rating to BB- from B+. "The upgrade...

Separating Wheat From Chaff: The Art Of Turnaround Investing.
July 17, 2006... Turnaround investing, it seems, is all the rage in the world of private equity and alternative assets these days. In the 10 years that Questor has been in the business, the field of turnaround investing has grown from a handful of mostly small...

Mezz Issuance To Swell As Issuers Favor Product's Stability.
July 24, 2006... With recent talk of expanding Libor spreads on first lien loans, and pushback on covenant lite facilities, issuance in the second lien market appears to be facing some challenges (BLR, 7/10/06). This has some mezzanine arrangers - including...

Fitch Unveils Synthetic CDO Risk Tool.
July 24, 2006... Last Wednesday, Fitch Ratings introduced what it is calling a first-of-its-kind synthetic collateralized debt obligation (CDO) risk modeling tool. The program - called RAP CD - is the result of a year's worth of effort by a London-based team of...

Secondary Markets Await Enron Appeal.(Enron Corp)
July 24, 2006... Federal District Court Judge Shira Scheindlin may soon dramatically alter the secondary market for a range of debt instruments if she decides not to hear an appeal against a bankruptcy court ruling sought by a handful of distressed debt...

BCBG To Tack On $50M Third Lien To Support Max Rave Purchase.
July 24, 2006... Goldman Sachs is bulking up the credit facility for retailer BCBG Max Azria Group with an additional $50 million third lien term loan. Proceeds from the new tranche, along with $30 million of existing term loan B debt and approximately $12...

Bank Duo Leads CharterMac Financing.
July 24, 2006... UBS and Bank of America launched syndication last Thursday of a $500 million senior credit facility for real estate finance company CharterMac. The new facility, consisting of a three-year, $150 million revolver and a six-year, $350 million...

BofA, Wachovia Shop Barrington Broadcasting.(Bank of America)(Wachovia Securities)(Barrington Broadcasting Group)(Brief article)
July 24, 2006... Last Thursday, Bank of America and Wachovia Securities were scheduled to launch syndication of a $172.5 million senior secured credit facility for Barrington Broadcasting Group. Proceeds from the deal will finance the $262 million acquisition...

UBS Pitches $140M Line For ArrMaz.(GSO Capital Partners)(ArrMaz Custom Chemicals)(Brief article)
July 24, 2006... UBS launched syndication at a bank meeting in New York last Wednesday for a $140 million senior secured first lien credit facility to back GSO Capital Partners' acquisition of ArrMaz Custom Chemicals. The new first lien credit facilities...

Regency Energy Seeks $850M Credit.(Regency Energy Partners)(TexStar Field Services)(Brief article)
July 24, 2006... UBS and other banks launched syndication of an $850 million acquisition financing for Regency Energy Partners last Tuesday. The single-B deal is split between a $250 million, five-year revolver led by Wachovia Securities, Citigroup and UBS, and...

Revlon Looks To Add On $100M In Debt.(Revlon Consumer Products Corp.)(Brief article)
July 24, 2006... Revlon Consumer Products Corp. (RCPC) announced on July 17 that it is seeking to add $100 million to its current term loan facility of $700 million. The $100 million increase is $25 million more than the originally proposed increase - on July...

Morgan Stanley, CS Arrange Ohmstede.
July 24, 2006... Morgan Stanley and Credit Suisse are leading a new senior secured credit facility for FR X OHMSTEDE Acquisitions Co.'s pending acquisition by an affiliate of First Reserve Corp., according to an institutional investor. The new facility includes...

Travelport To Launch Jumbo Deal This Week.(Brief article)
July 24, 2006... UBS, Credit Suisse and Lehman Brothers are scheduled to hold a bank meeting in New York on Wednesday, July 26, and a meeting in London on Thursday, July 27, to launch syndication of $2.6 billion in senior secured credit facilities to support...

Churchill Snares BNP's Schwimmer For Cap Markets.(Churchill Financial Holdings)(Durant D. (Randy) Schwimmer)(BNP Paribas)(Brief article)
July 24, 2006... Churchill Financial Holdings announced last week that Durant D. (Randy) Schwimmer will join the firm as senior managing director and head of capital markets. In his new role, Schwimmer will be responsible for all loan capital market activities,...

Piper Jaffray, CIT Collaborate On MM Financings.(middle market )(Brief article)
July 24, 2006... Piper Jaffray & Co. and CIT Group are joining forces to offer middle market companies a comprehensive set of financing solutions. Under the terms of the agreement, Piper Jaffray will expand its existing investment banking capabilities to...

Dealogic: LBO Volume Up 25%.( leveraged buyout )(Brief article)
July 24, 2006... Global sponsor-backed leveraged buyout (LBO) loan volume totals reached $142.5 billion in 2006 year-to-date with 230 deals, according to a recent Dealogic report. This is up 25% from the $113.8 billion raised in 2005, making it the highest ever...

Ratings Movers: Knoll Gets Boost/Fellow Furniture Co. Falls.
July 24, 2006... Office furniture manufacturer Knoll received an upgrade on July 14 from Standard & Poor's. The ratings on Knoll's $250 million term loan, $200 million revolver and corporate credit were all bumped up to BB from BB-. The upgrade for the...

LSTA Trade Data Study Reports Soaring Overall Secondary Volume.
July 31, 2006... The secondary loan market for the first quarter 2006 proved to be especially robust, according to The Loan Syndications and Trading Association's (LSTA) annual first quarter trade data study, released last week. Trade data for the study,...

Investors Get Ready For HCA To Lever Up.(HCA Inc.)
July 31, 2006... Though the initial tremors created by HCA's leveraged buyout (LBO) announcement have come and gone in both the debt and equity markets - the company's stock nudged up to just under the $51 bid price last week, while many of its bonds plummeted...

Moody's To Soften Fall Of I-Grade Angels.
July 31, 2006... In a move that will magnify the process of downgrading companies to speculative grade, Moody's Investors Service is altering its approach to transitioning investment grade ratings. The new approach will downgrade companies based on...

Evergreen International Flies Into Market With $400M Refi Deal.(Evergreen International Aviation Inc.)(Credit Suisse Group)
July 31, 2006... Credit Suisse launched syndication last Wednesday of a $400 million credit for Evergreen International Aviation, according to a source close to the deal. The facility includes $350 million in senior secured first lien tranches comprised of a...

Bank Trio Shops American Cellular.(Highland Cellular Inc.)(Morgan Stanley)(American Cellular Corp.)(Brief article)
July 31, 2006... Bear Stearns, Morgan Stanley and Lehman Brothers are in the market with a $250 million senior secured credit facility for American Cellular Corp. (ACC), a subsidiary of Dobson Communications Corp. The deal consists of a $50 million operating...

Wells Fargo Blooms Syndication Of FTD Credit.(Wells Fargo & Co.)(Interflora British Unit Ltd.)(Florists' Transworld Delivery)(Brief article)
July 31, 2006... Wells Fargo recently launched syndication of a $225 million credit facility to finance the FTD Group's acquisition of UK-based Interflora Holdings Limited for approximately $125 million (representing a multiple of nine times). FTD said the...

Navistar Seeks Flexibility.(Navistar International Corp.)(Credit Suisse Group)(Brief article)
July 31, 2006... Navistar International Corp. announced last Wednesday that it is seeking an amendment to its previously announced $1.5 billion, three-year senior unsecured term loan, arranged by Credit Suisse with Bank of America, Citigroup and JPMorgan. ...

Carmike Back For Fifth Amendment.(Carmike Cinemas Inc.)(Brief article)
July 31, 2006... Theater operator Carmike Cinemas announced last Thursday that is has entered into its fifth amendment for its $405 million senior secured credit facility, which includes a $50 million revolver, a $170 million term loan and a $185 million term...

Cross Border Loan Volume Is Up.(syndicated loans )(Brief article)
July 31, 2006... The volume of US and European cross-border syndicated loans - which comprises US borrowers seeking financing in Europe and vice versa - reached $26.8 billion in 2006 year to date, according to Dealogic. This is up 37% from $19.5 billion in the...

Calyon Announces Loan Group Appointments.(Peter Kelly)(Laurent Deroy)(Barbara Kellc)(Brief article)
July 31, 2006... Calyon Americas announced several new appointments to its New York-based loan syndications group last week. Peter Kelly, managing director, was named head of the group, succeeding Barbara Kellc, managing director, who has been named chief...

Barclays Further Builds Out Debt Group.(Barclays Capital Inc.)(Tim Broadbent)(Dave Scudellari)(Ed Kearns)
July 31, 2006... Barclays Capital announced a flurry of hires last week as it added 10 professionals to its US leveraged finance team. The appointments include: Tim Broadbent, managing director, bank loan syndicate; Dave Scudellari, managing director, leveraged...

Gaston To Lead GE CL Canada.(GE Commercial Finance appoints Ellis Gaston)(Brief article)
July 31, 2006... GE Commercial Finance announced last week that Ellis Gaston would now lead GE Corporate Lending in Canada. Gaston has four years of experience in sales and credit leadership roles at GE, and 15 years of experience serving borrowers in Canada....

Martini Tapped As CIT MD.(Deirdre A. Martini )(Brief article)
July 31, 2006... Deirdre A. Martini was appointed senior restructuring advisor and managing director in CIT Group's business capital group last week. In her new role, Martini, who was the former US trustee for the Southern District of New York, will assist the...

Chapman And Cutler Selects Libit For PF.(William M. Libit)(project finance )(Brief article)
July 31, 2006... Financial services law firm Chapman and Cutler has named partner William M. Libit head of its project finance group. The group is experienced in the negotiation and review of engineering and construction contracts, operating agreements, sale...

Moody's Modifies Corporate Finance Group.(Moody's Investor Service)(Alexandra Parker)(Mark Gray)(Brian Oak)(Brief article)
July 31, 2006... Moody's Investors Service announced a wave of changes in the leadership of its corporate finance group in the Americas last week. Alexandra Parker, who joined Moody's in 1994 after nearly a decade with Chase Manhattan Bank's global petroleum...

Where Have The Defaults Gone? Distressed Investors Wait, Wonder.
July 31, 2006... It's an old rule of thumb: two or three years after Wall Street raises too much debt capital for iffy issuers, companies start to default. If that point in the default cycle coincides with an economic slowdown, defaults can shoot up...

Ratings Movers: Magellan Up On Reduced Debt/US Shipping Sinks.
July 31, 2006... Magellan Health Services received an upgrade from Moody's Investors Service last week. The rating agency boosted the company's ratings on Magellan's $50 million term loan, $50 million letter of credit, $50 million revolver and corporate family...