Bank Loan Report articles from June 2008

Bank Loan Report archives from June 2008

Money Rolls Right In For HY Bond Funds.
June 2, 2008... Funds that invest in high yield bonds have experienced a rate of inflows unseen for almost five years, according to recently released data. High yield bond funds took in $358 million for the week ending May 21, according to research firm...

As Firms Cut Back, Cantor Fitzgerald Staffs Up.(Interview)
June 2, 2008... At a time when most large investment banks are slashing their fixed-income teams, Cantor Fitzgerald is making a hiring push in its debt capital markets group. Shawn Matthews, who heads the group and is based in New York, runs a sales and...

Credit Suisse Reorganizes Structured Products Unit.
June 2, 2008... Credit Suisse recently reorganized its structured products and CDO groups. These changes come after the firm shut down origination activity, cut positions and reduced its risk exposure, according to an internal memo at the bank. Mike...

Europe Needs New Debt Structures.
June 2, 2008... While bankers in Europe have finally begun to adopt new strategies designed to unclog the bloated European loan pipeline, some say the need now is for change in the way leveraged loan vehicles are structured. "Bankers need to step back and...

Smaller Deals Rule; Deutsche Reshuffles Lev Finance.
June 2, 2008... Credit Suisse launched a $350 million first-lien term loan for Anchor Glass Container Corp. Thursday. Price talk on the loan is at Libor plus 450 bps, with an OID of 98 and a 3.5% Libor floor, sources said. The credit facility also includes a...

Manitowoc Win Will Bring $2 Billion In Loans.
June 2, 2008... Approaching the final step to winning a bidding war with rival bidder Illinois Tool Works, The Manitowoc Co. is expected to submit its plan to buy U.K. cooking-equipment maker Enodis to shareholders next Monday, June 9. The Enodis board...

Data Tagging Regs Could Help Credit Markets.
June 2, 2008... Electronic tagging is not just for wildlife anymore. Credit market analysts, investors and others may soon get a helping hand in the form of new regulations pushed by the Securities and Exchange Commission, which would have all public companies...

Term Sheets.
June 2, 2008... Advance Amer Cash Advance Centers LOCATION: Spartanburg, SC PACKAGE AMOUNT: $270 mil. AMOUNT: $270 mil. ADMINISTRATIVE AGENT: BankAmerica BOOKRUNNER: BankAmerica Corp OTHER LENDERS: BankAmerica; Wachovia Bank NA; US Bank NA; Wells Fargo...

Investors Prepare For More Debt Exchanges.
June 9, 2008... Despite what seems like a newly reopened primary market, portfolio managers are preparing for more waves of forced debt exchanges, as companies with debt maturing seek to pay it off with more debt. The trend promises to continue over the coming...

Bright Future For Alternative Energy Debt?
June 9, 2008... Let's take a look into my crystal ball, into the future to a debt market with a new breed of issuer-energy companies. But not the oil and gas and energy services types that have lately been streaming onto the high yield bond primary market,...

Gaming Credits A Roll Of The Dice.
June 9, 2008... Recent bankruptcies and downgrades have put the spotlight on the gaming industry, an industry that, until recently, investors had thought was somewhat recession-proof. There are a variety of factors putting the screws to the gambling sector,...

Banks Kick Off $1.7B Lender Processing Deal.
June 9, 2008... JPMorgan and Bank of America held a bank meeting last week to launch a $1.725 billion credit facility for Lender Processing Services, a newly formed company spun off from Fidelity National Informational Services' division for handling banks and...

JPMorgan Markets $590M ARINC Facility.
June 9, 2008... JPMorgan is shopping a $590 million credit facility for Annapolis, Md.-based ARINC. The debt package consists of a $395 million first-lien term loan and a $195 million second-lien term loan. Price talk has not been determined. The proceeds will...

Could Refinancings Hurt Debtholders?
June 9, 2008... Companies that received debt financings during the buyout boom are going to face a harsh reality in the coming years: Refinancing maturing debt or amending financial covenants is going to be a costly affair, one that could restrict debt...

Term Sheets.
June 9, 2008... AvalonBay Communities LOCATION: Alexandria, VA PACKAGE AMOUNT: $330 mil. ADMINISTRATIVE AGENT: BankAmerica SYNDICATION AGENT: JP Morgan DOCUMENTATION AGENT: Sumitomo Mitsui Banking Corp; Wells Fargo; Deutsche Bank Trust Company Am...

Banks Prep $1B TLB For BE Aerospace.
June 16, 2008... In the third quarter, JPMorgan, Credit Suisse and UBS will launch, no pun intended, a $1.35 billion credit facility for BE Aerospace, a manufacturer of components for commercial passenger aircraft and business jets. The debt package consists of...

CDS Spreads Point To Further Trouble.
June 16, 2008... Credit default swap spreads have widened in recent weeks after months of tightening, and analysts and investors agree this could be bad news for the leveraged finance markets. Consider CDS spreads to be the spooky orchestral music you hear...

Claire's Stores Bonds, Loans Tumble.
June 16, 2008... Claire's Stores' debtholders last week might have felt akin to fickle tweens at a shopping mall, as they dumped the troubled mall retailer's bonds and loans like the latest fashion, causing the prices of these securities to plunge. On...

Picking The Perfect Partner For Your Portfolio Of Love.
June 16, 2008... Standing on summer's doorstep always makes me feel frivolous. Not to mention that I'm a tad tired of those wacky jokesters over at the DealBreaker Web site having all the fun. I mean, they get to cuss and everything. Last week, they zeroed...

RBC Launches $280M TLB for TriZetto.
June 16, 2008... The Royal Bank of Canada is shopping a $280 million term loan B for Newport Beach, Calif.-based TriZetto. Price talk is at Libor plus 450 bps, with an OID of 98 and a 3% Libor floor. The proceeds will help fund TriZetto's acquisition by private...

Market: Pacific Lumber Ruling Burns Bondholders.
June 16, 2008... A recent ruling by a federal bankruptcy court judge has angered many in the high yield bond community, who feel his decision to allow Pacific Lumber Co. to sell off an affiliate's timberland assets as part of a reorganization plan was unfair to...

Credit Management Evolves With the Times.(Interview)
June 16, 2008... It has been a tumultuous year in the credit markets, especially for portfolio managers who have been charged with the task of coming up with successful investment strategies, despite the industry's volatile state. At the heart of the credit...

Underwriters Launch Pieces Of Clear Channel Debt.
June 23, 2008... Underwriters last week launched a $3 billion chunk of a $10.7 billion term loan B for Clear Channel Communications. The deal comes nearly one month after private equity firms Thomas H. Lee Partners and Bain Capital Partners and a consortium...

Debtholders Reject Consent Solicitations.
June 23, 2008... Portfolio managers are going to put up more resistance to changes in bond and loan agreements, meaning there will be tougher negotiations ahead as more distressed companies seek greater financial flexibility to survive. Debtholders may demand...

Power Hitters Find Home, While Little Guys Strike Out.
June 23, 2008... As corporate recruiters like to say, there is always a demand for talent. In other words, investment banks tend to follow a code similar to that of the Soprano family-you don't whack a good earner. Not unless you've got a whopper of a reason....

Firmer Secondary Raises Hope For European Primary.
June 23, 2008... In the final stretch of the second quarter, prices in the European leveraged loan secondary market have firmed up considerably, and with most of the widely traded namesnow trading at above 90 cents on the dollar, market participants are looking...

Bank Group Markets $705M TLB For Getty Images.
June 23, 2008... Barclays, GE and the Royal Bank of Scotland have begun marketing a $705 million term loan B for Getty Images, a Seattle-based supplier of photographs. Price talk is at Libor plus 450 bps, with an OID of 97 and a 3.25% Libor floor. "We're...

Landry's Set To Serve Up Platter Of Debt.
June 23, 2008... Just when you thought the leveraged finance markets had had their fill of consumer-related deals, a restaurant company is cooking up a fresh serving of debt for investors to snack on. Landry's Restaurants agreed to be acquired by Chairman...

Credit Suisse Kicks Off $1B TLB For ATP Oil & Gas.
June 23, 2008... Credit Suisse last week launched a $1 billion first-lien term loan for Houston-based ATP Oil & Gas. Price talk is at Libor plus 475 bps, with an OID of 98 and a 3.25% Libor floor. Some investors said they are interested in the deal because of...

PE Firms + Corporates = Gay Marriage?
June 23, 2008... Some partnerships can fuel brilliance. Take Mick Jagger and Keith Richards or Ben and Jerry, for example. Others, however, like punk rock's Sid and Nancy, can leave a path of destruction in their wake. In the leveraged buyout world, the jury is...

CDS Market May Boost Bankruptcies.
June 30, 2008... As if the market needed something else that would push companies toward bankruptcy, the large market for credit default swaps may do just that, according to analysts. Why? Because, these analysts note, CDS holders may not have the same...

Let's Agree To Agree On What Ebitda Means.
June 30, 2008... Ebitda is used as a measure of a company's cash flow and is instrumental in designing covenants for debt and profitability. A company cannot prink itself up with inflated sales numbers or projected income if measurements of its financial health...

The SEC's Plan For The 21st Century: Sunshine.
June 30, 2008... The Securities and Exchange Commission wants you to know stuff. No really, they do. And they have a plan, otherwise known as a "21st Century Disclosure Initiative." In a press release last week, the agency called the plan an "ambitious...

New Calculator May Help LCDS Market.(loan credit default swaps)
June 30, 2008... While opinions differ on how successful it will be, the hope is that the loan-only credit default swap calculator recently launched by Bloomberg will help resolve disagreements regarding what the LCDS market labels "cancelability," as well as...

Goldman Shops $500M TLB For Hologic.
June 30, 2008... Goldman Sachs is marketing a $500 million term loan B for Hologic, a Bedford, Mass.-based health-care technology provider. Price talk is at Libor plus 325 bps, with an OID of 99. In addition to the term loan B, Hologic's debt consists of a $600...

Reliance Could Issue Up To $750M In Debt.
June 30, 2008... As a result of its acquisition of PNA Group on June 17, Reliance Steel & Aluminum will issue as much as $750 million in debt come the end of the summer. The acquisition is expected to close in two months, conditional on shareholder and...

Focusing on Loans, Cairn Seeks Advisory Mandates.
June 30, 2008... When London-based investment management firm Cairn Capital entered the European leveraged loan business in February 2006, the market was soaring toward an all-time high, and the firm, like many others during that time, chose to jump into the...