Bank Loan Report articles from June 2006

Bank Loan Report archives from June 2006

TRS CLO Volume Could Rise As Managers Warm Up To Vehicle.(total return swaps, Collateralized loan obligations)
June 5, 2006... The collateralized debt obligation (CDO) market continues to expand in leaps and bounds, and the latest manifestation of its growth comes in the form of synthetic collateralized loan obligations (CLOs) that use total return swaps (TRS). This...

GSC Continues To Build Euro CDO Biz.(collateralized debt obligation )
June 5, 2006... Even though leveraged finance participants in Europe have welcomed the expansion of the collateralized debt obligation (CDO) market there, many are also quick to note that it has brought with it increased challenges, notably tight spreads, high...

Kinder MBO May Spawn Other Buyouts.(management buyout of Kinder Morgan Inc.)
June 5, 2006... Kinder Morgan's bombshell disclosure last week that its top managers and a group of investors plan to take the pipeline giant private in a $13.5 billion management buyout (MBO), the largest in history, had debt market players licking their...

UBS, GE Set To Launch YFCS Deal To Support Ascent Purchase.(TA Associates's Youth and Family Centered Services )(Brief article)
June 5, 2006... UBS and GE Capital are scheduled to launch syndication of a $170 million credit facility for TA Associates portfolio company Youth and Family Centered Services (YFCS) next Wednesday, June 7, in New York. The deal for Austin, Texas-based YFCS, a...

MACTEC Seeks $155M Facility.(MACTEC Engineering & Consulting)(Brief article)
June 5, 2006... MACTEC, a provider of engineering and construction services, hit the market last Wednesday with a $155 million credit facility, according to a source. The credit comprises a $35 million, five-year revolver and a $120 million, six-year first...

RCN Completes Refinancing.(Deutsche Bank AG, Citigroup Inc.)(Brief article)
June 5, 2006... Cable company RCN Corp. closed on a new $130 million credit facility last week. The deal includes a seven-year, $75 million term loan priced at Libor plus 175 bps and a five-year, $55 million revolver priced at Libor plus 200 bps, with a...

Gilbert Named Imperial's Director Of Fixed Income Research.(Mary Gilbert appointed at Imperial Capital Bank)(Brief article)
June 5, 2006... Boutique investment bank Imperial Capital announced last week that it has appointed Mary Gilbert as the new director of fixed income research. Gilbert, who has 21 years of experience in the high yield and distressed arena, including six years...

LeBoeuf Hires Hulsh For New York Office.(LeBoeuf, Lamb, Greene and MacRae appoints Andrew Hulsh )(Brief article)
June 5, 2006... LeBoeuf, Lamb, Greene & MacRae announced last week the appointment of Andrew Hulsh to the firm's New York office. Hulsh, who was most recently a partner at Kramer Levin Naftalis & Frankel, is now a partner in LeBoeuf's corporate and finance...

Harris Nesbitt Recruits Duo For Media Group.(Andrew J. Buchholtz, Seth E. Rosenfield appointed)(Brief article)
June 5, 2006... Harris Nesbitt, the US investment and corporate banking arm of BMO Financial Group, announced last week the appointment of Andrew J. Buchholtz as a managing director and Seth E. Rosenfield as a director in the firm's media, communications and...

Henderson Outsources Back Office Duties.(Henderson Global Investors Ltd. acquires JPMorgan Hedge Fund Services )(Brief article)
June 5, 2006... Henderson Global Investors, a global asset manager with $126.3 billion of assets under management, entered into an agreement with JPMorgan Hedge Fund Services (JPMorgan HFS) last week. JPMorgan HFS will take over Henderson's hedge fund middle...

CLO Market Looks Forward To Increased Levels Of LCDS.(Collateralized loan obligations)(loan credit default swaps )
June 5, 2006... Just as the International Swaps and Derivatives Association (ISDA) prepares to release standards for trading leveraged loan credit default swaps (LCDS), several US dealers are already making markets in at least 80 to 100 names, according to...

Global Packaging Still Faces Challenges As Energy Costs Rise.
June 5, 2006... The global packaging sector is still struggling, as the increase in inflationary cost pressures resulting from high and unstable raw material prices and elevated energy costs continue to plague numerous companies in the industry, according to...

Ratings Movers: NewMarket Up/Weak Cash Flow Hurts Vought.(Moody's Investor Service)
June 5, 2006... Moody's Investors Service bumped up the rating on NewMarket Corp.'s $100 million revolver to Ba2 from Ba3 last week. The corporate family rating was also upgraded, to Ba3 from B1, and NewMarket's unsecured debt rating was raised to B1 from B2....

Revlon Debt Plans Unknown After Scotching Bank, Equity Deals.(Revlon Consumer Products Corp.)
June 12, 2006... Revlon Consumer Products Corp.'s sudden decision to bail out of the bank loan and equity markets, a move which took some bankers and investors by surprise, is casting some doubt on the prospects for the low-rated company's plans to pay down its...

Bear Stearns Refocuses Energy Efforts.
June 12, 2006... After scuttling its trading joint venture with the bankrupt Calpine Corp. in April, Bear Stearns has been assiduously recasting its energy efforts, making a key hire in energy investment banking last week while continuing to lay the groundwork...

DTCC To Offer Central CDS Warehouse.(credit default swaps to be offered by Depository Trust & Clearing Corp.)
June 12, 2006... Mention of the latest developments in credit default swaps (CDS), whether on collateralized debt obligations (CDOs) or asset-backed securitizations (ABS), usually calls to mind ever-swelling notional market value and customized deal structures....

Credit Suisse, BofA Shop TransDigm Deal With Cov. Lite TLB.(Credit Suisse and Bank of America launched credit facility for TransDigm Group )(Brief article)
June 12, 2006... Credit Suisse and Bank of America launched syndication of an $800 million credit facility for Cleveland-based TransDigm Group last Wednesday. The deal for TransDigm, a manufacturer of highly engineered aerospace components, includes a $150...

UBS, DrKW Pitch Gleason In US And Europe.(Brief article)
June 12, 2006... Last Wednesday, UBS and Dresdner Kleinwort Wasserstein (DrKW) held a bank meeting in New York to launch syndication of a $363 million credit facility to support the acquisition of Rochester, N.Y.-based Gleason Corp. by management and the...

Trio Launches Standard Steel.(Brief article)
June 12, 2006... UBS, Jefferies & Co. and Bear Stearns hit the market last Tuesday with a $165 million credit facility to support Trimaran Capital Partners' acquisition of Standard Steel. The deal includes a $20 million revolver, a $100 million, six-year first...

Goldman Snares Kirkland Bankruptcy Pro.(Brief article)
June 12, 2006... Goldman Sachs has hired Kirkland & Ellis' James Sprayregen as a managing director in investment banking. Sprayregen was the head of Kirkland's worldwide restructuring group, which has handled such high profile bankruptcies as those for UAL...

Ares Hires Alexander To Launch Euro Biz.(appointments)(Brief article)
June 12, 2006... Ares Management has appointed Miles Alexander to begin the development of Ares' European business based out of London. Alexander will be working closely with David Sachs, co-head of the Ares capital markets group in Los Angeles, on...

Calyon Adds To Financial Sponsors Group.(Stephane Barret was appointed as managing director in Calyon)(Brief article)
June 12, 2006... Calyon announced last week that Stephane Barret was appointed as managing director and coverage officer in the global financial sponsors group, a group co-managed by Arnaud Limal and Jaques de Villaines. Before coming to Calyon, Barret worked...

US DCM Group.(debt capital markets formed by Societe Generale Corporate & Investment Banking)(Brief article)
June 12, 2006... Societe Generale Corporate & Investment Banking (SG CIB) has announced the creation of an integrated US debt capital markets group based in New York. "The new US debt capital markets group combines all of the firm's US debt capital markets...

Wachovia Hires Duo For New Project Finance Team.(appointments)(Brief article)
June 12, 2006... Wachovia Securities announced that Roger Bredder and Jeff Wood have been appointed as managing directors in the newly formed project finance group within credit products. Bredder, head of the group, is based in Charlotte, N.C., and Wood is...

BNP Paribas Selects Berry To Lead NA Corporate Finance.(appointments)(North America)(Brief article)
June 12, 2006... BNP Paribas announced last week the appointment of Elsa Berry as head of corporate finance in North America. Under Berry's leadership, corporate finance will mainly focus on three specific sectors: consumer goods, industrials and oil, gas and...

SunTrust Brings On Five New MDs.(appointments of managing directors)(Brief article)
June 12, 2006... SunTrust Robinson Humphrey, the investment banking arm of SunTrust Bank, announced the addition of five senior level managing directors. Corey Pinkston was appointed managing director and head of credit and tax-exempt bond origination; John...

DB Appoints Servis To Head Synthetic CDOs.(appointments)(Deutsche Bank)(collateralized debt obligation)(Brief article)
June 12, 2006... Deutsche Bank announced the appointment of Neil Servis as managing director and global head of managed synthetic collateralized debt obligation (CDO) origination and distribution. In addition, he will co-head European CDO origination and...

Moody's Loan Default Rate Declines.(Brief article)
June 12, 2006... Moody's Investors Service reported a slight decline in its issuer loan default rate for May, as it fell to 1.3% from 1.5% in April. No Moody's-rated loan issuers defaulted in May, said the ratings agency. The global speculative grade...

ISDA Issues Template For CDS On CDOs.(International Swaps and Derivatives Association)(Compact Disc )(Collaboration Data Objects )(Brief article)
June 12, 2006... The International Swaps and Derivatives Association announced the launch of a documentation template for credit default swaps on collateralized debt obligations (CDS on CDOs) last week. The "Credit Derivative Transaction on Asset-Backed...

Ratings Movers: Level 3 Ascends/CCS Down On Medicare Cuts.(Moody's Investors Service)
June 12, 2006... Moody's Investors Service gave nationwide communications service provider Level 3 Communications a boost on June 2, as it upgraded the ratings on all existing Level 3 debt securities. Among the upgrades was the Broomfield, Colo.-based company's...

How To Avoid Death Spiral' Distressed Debt Investments.
June 12, 2006... by Daniel Bender, managing director at AEG Partners in Chicago Often I hear distressed debt investors say: "We look for good companies with a bad balance sheet." In essence, these investors are telling me they take positions in companies...

Issuer-Friendly Loan Market Pervades Europe Just Like In US.(Molnlycke Health Care)(Deutsche Bank AG)(Barclays)
June 19, 2006... Although bets are still on among European market players as to which country will walk off with the World Cup, the one thing they know for sure is that their loan market's issuers, and by extension, sponsors and arrangers, are still winning the...

Confab: Select CDO Managers Prudently.(collateralized debt obligation)
June 19, 2006... As structural innovation takes hold within the European collateralized debt obligation (CDO) market, there has never been a better time for investors to pay close attention to the kind of manager who will be at the helm of credit decisions,...

Macau's Gaming Market Is On A Roll.(Las Vegas Sands Inc.)(casinos)
June 19, 2006... As evidenced by the success of the completed $2.5 billion bank loan deal earlier this year for Las Vegas Sands Corp.'s Venetian Macau Resort-Hotel-Casino, investors appear to like the bright business prospects that China's tiny peninsula of...

UBS, GECC Shop ILC Recap; Junior Capital To Take Out 2nd Lien, Mezz.(microelectronic components)(Brief article)
June 19, 2006... UBS and GE Capital hit the market last Tuesday with a $300 million credit facility in support of a recapitalization for ILC Industries by its majority shareholder, Behrman Capital, according to a source. The deal for ILC, a Bohemia, N.Y.-based...

Cov. Lite Deal With Call Protection Pitched For Western Dental.(covenant lite)(Western Dental Services)(Citigroup Venture Capital)(Brief article)
June 19, 2006... UBS and Merrill Lynch launched syndication last Thursday of a $275 million credit facility in support of Citigroup Venture Capital's purchase of Western Dental Services. The deal for the largest dental provider in California includes a $25...

Barclays Hires Eng, Feinstein For Distressed.(Barclays Capital)(Timothy Eng )(Rick Feinstein )(Brief article)
June 19, 2006... Barclays Capital announced last week two new appointments to the firm's US distressed debt team in New York. Timothy Eng and Rick Feinstein will both now serve as directors in distressed debt trading and distressed debt sales, respectively....

Comerica's Clifford Hops To Churchill.( Comerica Bank)(Timothy G. Clifford )(Churchill Financial Holdings)(Brief article)
June 19, 2006... Churchill Financial Holdings, a commercial finance company providing senior and mezzanine debt financing to smaller middle market companies that are primarily backed by sponsors, announced the appointment of Timothy G. Clifford as a managing...

LSTA's Hefferan To Focus On Operations.(Loan Syndications and Trading Association)(Ellen Hefferan )(Brief article)
June 19, 2006... The Loan Syndications and Trading Association (LSTA) announced last week that Ellen Hefferan has joined the association to head an effort focusing on the operational aspects of the loan market. In her new role, Hefferan will support the...

IACPM Recruits Banks.(International Association of Credit Portfolio Managers)(Marcia Banks )(Brief article)
June 19, 2006... The International Association of Credit Portfolio Managers (IACPM) announced last week the appointment of Marcia Banks as associate director. In her new role, Banks will work alongside Som-lok Leung, executive director of the IACPM, to help the...

Chapman and Cutler Boosts Corporate Finance Staff.(Patrick Lawler )(Christopher Oliver)(Brief article)
June 19, 2006... Financial services law firm Chapman and Cutler announced the appointments of two corporate finance partners, Patrick Lawler and Christopher Oliver, to its San Francisco office in an effort to expand the firm's presence in the structured...

Akin Gump Brings On D'Urso.(Akin Gump Strauss Hauer & Feld)(David J. D'Urso )(Brief article)
June 19, 2006... Akin Gump Strauss Hauer & Feld announced that David J. D'Urso has joined the firm as a partner in its private equity practice in New York. D'Urso, most recently a partner at O'Melveny & Meyers, represents private equity sponsors, venture...

D'Anselmo To Head BNP Paribas Milan.(Nicola D'Anselmo )(Brief article)
June 19, 2006... BNP Paribas announced the appointment of Nicola D'Anselmo as head of its Milan branch and head of its corporate and investment banking activities in Italy. D'Anselmo joined BNP Paribas leveraged finance in Milan in 1995, and soon became head of...

DB Makes ABS Appointments.(Deutsche Bank)(asset-backed securities)(Greg Lippmann )(Kevin Flaherty )(Patrick Frowein )(Brief article)
June 19, 2006... Deutsche Bank announced the appointment of Greg Lippmann as global head of asset-backed securities (ABS) trading and syndicate. Lippmann, who has been with the company since 2000, was most recently head of ABS trading and syndicate for North...

NewStar Completes Second CLO.(NewStar Financial)(collateralized loan obligation)(Citigroup Inc.)(Wachovia Securities Inc.)(Brief article)
June 19, 2006... Specialty finance company NewStar Financial announced last week that it has priced and closed a $500 million collateralized loan obligation (CLO) called the NewStar Commercial Loan Trust 2006-1 CLO. The deal is secured by a portfolio of...

Cohen Emerges With MM CLO.(Cohen Brothers)(middle market)(collateralized loan obligation)(Emporia Capital Management )
June 19, 2006... Another middle market collateralized loan obligation (CLO) has emerged, as loan collateral in the middle market continues to grow in popularity for CLO managers because of its relatively high yield. Earlier this month, Merrill Lynch brought to...

CLOs Flood Primary Pipeline In Europe.(collateralized loan obligations)(Brief article)(Statistical data)
June 19, 2006... Weighing on the pipeline in size are synthetic balance-sheet collateralized loan obligations (CLOs), such as Arran Corporate Loans No.1, a GBP3.5 billion ($6.5 billion) balance sheet fully funded synthetic CLO for The Royal Bank of Scotland....

Ratings Movers: DynCorp Up On IPO/Carmike Falls On Notes Repay.
June 19, 2006... Irving, Texas-based DynCorp International (DI) has received a bump up in ratings from Moody's Investors Service. The company's $90 million revolver and $345 million term loan B ratings were raised to Ba3 from B2, while its $320 million 9.5%...

Moody's May Expand Offices Into Seven World Trade Center.(Moody's Investors Service )
June 19, 2006... In a move that bodes well for the rebirth of the World Trade Center area in New York's financial district, Moody's Investors Service is rumored to be close to inking a deal to be the first major tenant in Larry Silverstein's newly opened Seven...

Hertz Corp. Seeks To Reprice Credit Facility In Obstinate Market.(car rental company)
June 26, 2006... Lead arranger Deutsche Bank is trying to rotate the tires on The Hertz Corp.'s December 2005 $3.5 billion credit facility, as the bank seeks to lower pricing by 25 basis points (bps) to Libor plus 200 bps on the deal's $293 million term loan,...

Europe Sees Softer Secondary Loan Market.
June 26, 2006... The secondary market for leveraged loans in Europe is often inactive, with little movement in names. However, over the past few weeks, traders and other participants have noted a market softening, particularly in the larger, more liquid names,...

Rivals May Emulate Delta's Pension Move.(restructure and emerge from bankruptcy)
June 26, 2006... Delta Air Lines recent move to eliminate pension plans covering 13,000 active and retired pilots (and spouses) could finally breathe some life into the struggling airline company. Indeed, if approved, the pension cuts would free up more cash to...

Libertas Partners Plans To Start Loan Sales And Trading Platform.(Bank Loan)(Brief article)
June 26, 2006... Libertas Partners hasn't finished its growth spurt just yet. The Greenwich, Conn.-based high yield and distressed research and trading boutique, launched in 2002 by CEO Gary Katcher, has added several new staffers, a Manhattan satellite office,...

Cedar Fair In Market With $2.09B Deal.
June 26, 2006... Bear Stearns shopped a $2.09 billion credit facility for Cedar Fair last week. The credit includes a $1.74 billion term loan and a $350 million revolver with price talk in the Libor plus 175 bps to 200 basis points (bps) range, according to...

Kendle Deal To Support Charles River Purchase.
June 26, 2006... UBS launched syndication last Thursday of a $225 million credit facility for clinical research service provider, Kendle International. The deal will include a $25 million, five-year revolver and a $200 million, six-year term loan. Price talk is...

Toys R' Us Secures $1B Line.(Securities and Exchange Commission filing)(Brief article)
June 26, 2006... Toys "R" Us' Delaware subsidiary has received a commitment letter from Bank of America, Deutsche Bank, Citigroup and Credit Suisse, guaranteeing a $1 billion senior secured facility, according to a Securities and Exchange Commission filing. The...

GM Seeks Secured Revolver.(credit facility into a secured facility)(Brief article)
June 26, 2006... General Motors Corp. (GM) is amending and extending its existing $5.6 billion unsecured revolving credit facility into a secured facility. As part of the new $4.48 billion senior secured deal, existing lenders will receive a 20% reduction in...

LSTA: July 4 Should Be Loan Market Holiday.(Loan Syndications and Trading Association )(Brief article)
June 26, 2006... The Loan Syndications and Trading Association (LSTA) stated that it recommends treating July 4, 2006, as a loan market holiday for purposes of calculating delayed compensation under the LSTA standard forms of trade confirmation. In...

LSTA Finalizes PSR For LCDS Confirm.(Loan Syndications and Trading Association )(Brief article)
June 26, 2006... Following a comment period that ended June 16, The Loan Syndications and Trading Association (LSTA) has finalized the Physical Settlement Rider (PSR) to the syndicated secured loan credit default swap (LCDS) standard terms supplement, also...

Babson Closes Avon Ridge CDO.(Babson Capital Management)(collateralized debt obligation)(Brief article)
June 26, 2006... Babson Capital Management announced it has closed Avon Ridge CDO, a $130 million synthetic collateralized debt obligation (CDO). The Avon Ridge transaction, which includes a diversified portfolio of credit default swaps referencing primarily...

Seneca Closes Seneca III CDO.(collateralized debt obligation)(Brief article)
June 26, 2006... San Francisco-based Seneca Capital has completed the sale of the portfolio of Seneca III, a leveraged collateralized debt obligation (CDO) that invested in high yield bonds and bank loans with assets of approximately $250 million. According to...

BMO Unifies Brands Under BMO Capital Markets.(wholesale banking capabilities)(Brief article)
June 26, 2006... BMO Financial Group announced it is unifying BMO Nesbitt Burns and the Harris Nesbitt brands in Canada and the US under one single brand: BMO Capital Markets. The new brand encompasses all of the firm's wholesale banking capabilities, including...

S&P Offers Pricing Service.(launch of a subscription service)(Standard and Poor's)(Brief article)
June 26, 2006... Standard & Poor's announced last week the launch of a subscription service that provides clients with Web-based access to S&P's securities evaluations end-of-day (4:00 p.m. close Eastern Standard Time) pricing of more than 2.6 million global...

Dealogic Reports Lower Loan Volume.(syndicated loan )(Brief article)
June 26, 2006... According to Dealogic, US syndicated loan volume has decreased slightly in 2006 by 2% down to $749.2 billion from $761.1 billion in the first half of 2005. After a significant increase in the number of deals from 2003 to 2005, the number...

Blackstone Snares RBS' Petrucco.(David Petrucco is hired as a managing director of capital markets)(Brief article)
June 26, 2006... The Blackstone Group has hired David Petrucco to its corporate debt group as managing director of capital markets. He was formerly a managing director in charge of loan syndicate/capital markets for North America at The Royal Bank of Scotland....

Ratings Movers: Terex Rises/Millennium Sinks On Lead Litigation.
June 26, 2006... Westport, Conn.-based Terex Corp. received a credit boost, as Moody's Investors Service upgraded a number of the company's ratings, including its $300 million revolver, $375 million term loan B and $210 million term loan C ratings to Ba3 from...