Bank Loan Report articles from May 2004

Bank Loan Report archives from May 2004

CLOs Turn Toward ABL For Additional Source Of Investment.(collateralized loan obligations, asset-based loan)
May 3, 2004... In a market still teeming with yield-hungry portfolio managers searching for more deal supply to satisfy demand, US leveraged loan market players have increasingly been accessing alternative parts of the debt market to find deals with...

DebtX: Fostering Liquidity In Illiquid Markets.
May 3, 2004... Creating liquidity in the financial marketplace is the name of the game for DebtX, a full-service loan sale advisor and online marketplace for commercial debt that prices, markets and sells loans. Since its inception in 1999, the firm has made...

LatAm Banking: More Lending Required.
May 3, 2004... Latin America is a region that has been pulled through the wringer and back many times. Its economies are touch and go - they rise and fall with speed, and as they do, so, too, do their banking systems. As such, a strong banking system in...

Mark IV Industries US/Euro Refinancing To Hit Market.(Mark IV Industries)(Brief Article)
May 3, 2004... JP Morgan and Bear Stearns held a bank meeting last week in Milan, Italy to launch syndication of the euro-denominated portion of Mark IV Industries' $865 million refinancing deal. The credit, which will launch syndication in the US this week,...

Polypore On Course To Close.(Polypore Inc.)(Brief Article)
May 3, 2004... Meanwhile, JP Morgan and Bear Stearns were on course to close out their $495 million buyout credit for Polypore, a manufacturer of highly engineered filtration products used in power storage, healthcare, electronics and specialty technology...

GECC Rolls Out Bearing Co. Deal With Second Lien Piece.(Brief Article)
May 3, 2004... GE Capital came to market last week with a $220 million refinancing credit for the Roller Bearing Company of America, a global manufacturer and distributor of precision bearing products. The deal includes a $60 million, six-and-a-half-year...

Wachovia Shops Contech Acquisition Line.(Brief Article)
May 3, 2004... Wachovia Securities launched syndication of a $200 million acquisition financing deal for Contech Construction Products last Tuesday. The credit includes a $110 million, five-year revolver and a $90 million, five-year term loan, both priced at...

GE Commercial Finance To Tap Market In Northern Cali, Nevada.(Brief Article)
May 3, 2004... GE Commercial Finance/Corporate Lending announced last week that it has opened a new Sacramento, Calif. area office that will be headed up by VP Stephen Fetzko. The move constitutes further expansion by the lender, which also opened up a new...

Siskind Surfaces At Imperial Capital.(Brief Article)
May 3, 2004... After leaving distressed debt broker The Seaport Group last month, Amy Siskind surfaced again last week at Imperial Capital's New York office. Siskind is now a managing director in charge of the Beverly Hills, Calif.-based boutique brokerage...

Goldman Beefs Up Restructuring Team With Narain.(Brief Article)
May 3, 2004... Dhruv Narain, a former managing director in Credit Suisse First Boston's restructuring advisory business, was said to have jumped to Goldman Sachs last week. The move comes at a time when Goldman has been increasing its leveraged loan deal...

CIBC World Markets Expands UK Leveraged Finance Group.(Brief Article)
May 3, 2004... CIBC World Markets has expanded its UK leveraged finance group, according to market sources. The firm has made three hires to its financial sponsor coverage and acquisition finance group. Aurelien Loszycer joins as a senior director from ING's...

High Grade Investors Fish In High Yield's Nether Regions.
May 3, 2004... High grade investors are crossing the line into high yield in growing numbers - and not just for bonds on the cusp of investment-grade status. While high yield mutual funds have been hit with outflows this year - AMG Data Services reports...

Bondholders Hang Tight As Nortel Debt Questioned.
May 3, 2004... Nortel Networks Corp. inched closer towards defaulting on some $3.9 billion of outstanding debt as the embattled telecommunications equipment maker sacked its CEO amid worries an accounting probe might turn into a full-fledged financial...

Morgan Stanley Builds Bookrunner Momentum In 2nd Quarter.
May 10, 2004... In a year that so far seems to be up-and-coming for arranger banks like Wachovia Securities, Credit Suisse First Boston, Lehman Brothers and UBS - who all rose or remained in the top 10 for the leveraged loan bookrunner league tables last...

BMA, LSTA Create Model NOL Order.(Bond Market Association)(Loan Syndications and Trading Association; net operating loss)
May 10, 2004... In a move that could alleviate the amount of time, effort and uncertainty investors might experience while dealing with tax credit issues surrounding bankrupt companies, The Bond Market Association (BMA) and the Loan Syndications and Trading...

High Yield Will Shine When Rates Rise.
May 10, 2004... While many fixed income players believe interest rate hikes expected later this year could chill the bond markets, there is increasing evidence that one unlikely sector - high yield corporate bonds - could turn out to be immune from the...

After Regulatory Holdup, Transwestern Pipeline Credit Closes.
May 10, 2004... Wachovia Securities and SunTrust Bank's $550 million refinancing deal for Transwestern Pipeline Co. allocated last week, trading up into the 101 1/4-to-101 1/2 range after closing, according to a source. The deal includes a $150 million,...

Wachovia Shops Unifrax Dividend Recap.(Brief Article)
May 10, 2004... After closing out Transwestern, Wachovia moved on to launch syndication of a $170 million dividend recapitalization deal for Unifrax Corp., a heat-resistant ceramic fiber producer. The credit, which hit the market last Tuesday, includes a $135...

NEP Broadcasting To Connect With Market For LBO Financing.(Brief Article)
May 10, 2004... Meanwhile, Wachovia is also prepping to launch syndication tomorrow of a $210 million leveraged buyout (LBO) credit for NEP Broadcasting. The deal will support Apax Partners' and Spectrum Equity Investors' acquisition of the company from...

Nextel Term Loan Oversubscribed.(Brief Article)
May 10, 2004... Nextel Partners' $575 million term loan was said to be oversubscribed by investors last week and possibly moving toward a reverse price flex, according to a source. The refinancing deal, led by JP Morgan, was originally pitched at Libor plus...

Sterigenics Acquisition Line In Syndication.(SteriGenics International Inc)(Brief Article)
May 10, 2004... UBS launched syndication last Wednesday of a $240.5 million acquisition deal for Sterigenics International. The credit includes a $35 million revolver initially priced at Libor plus 275 basis points, a $170.5 million first lien term loan...

Sunny D Deal Shines On Loan Investors.(Sunny Delight Beverages Co.)(Brief Article)
May 10, 2004... UBS also brought to market last Wednesday its $375 million bank deal supporting the buyout of the Sunny Delight Beverages Co. The facility includes a $50 million revolver that is priced at Libor plus 250 basis points, a $150 million first lien...

Dynegy To Launch New Bank Deal With Better Terms.(Brief Article)
May 10, 2004... Dynegy, an electricity, natural gas and natural gas liquids provider, announced that it was scheduled to hit the market today, May 10, with a $1.3 billion credit facility intended to refinance its existing $1.1 billion revolver that expires in...

Metris Companies Gains Liquidity, Future Looks Brighter.
May 10, 2004... News that credit-card issuer, The Metris Companies, had finalized terms on a $300 million unsecured Libor floater, thereby completing a funding plan that injects $500 million into the company's coffers and allows it access to a previously...

Deutsche Bank Sets Guaranteed Loan Funding Timeline.
May 17, 2004... In hopes of setting a market precedent, Deutsche Bank announced last week that effective June 1, it will implement a T+10 funding timeline for primary credits where the bank is an administrative agent. If a deal is not fully funded by the tenth...

Second Lien Demand Dynamic To Change.
May 17, 2004... The length of the second lien's life span has been a hot topic in the leveraged loan market recently, due to the very hot, then suddenly cold, institutional market reception to the debt product (BLR, 4/26). But institutional second lien loans...

Bank Mergers Remain US Phenomenon.
May 17, 2004... Will the mega-mergers in the US banking sector - JP Morgan Chase/Bank One and Bank of America/Fleet Boston Financial - spur consolidation in the European banking sector as well? No, say bank analysts who know Europe well: There's little...

Fitch Risk Develops Commercial Bank Rating Model.
May 17, 2004... Fitch Risk, an affiliate of Fitch Ratings that provides risk technologies and enterprise risk advisory services relating to market, credit and operational risk, has launched a credit rating system (CRS) global bank rating model. The new service...

Bear Stearns Shops Term Loan For Magnet Company, Magnequench.(Brief Article)
May 17, 2004... Administrative agent Bear Stearns launched a $175 million, five-and-a-half-year term loan B for Magnequench International last Monday, May 10. The senior secured tranche is intended to refinance the Indianapolis-based supplier of high-energy,...

Polypore Deal Includes New Euro Carve-Out.(Brief Article)
May 17, 2004... JP Morgan's and Bear Stearns' $495 million bank deal for Polypore was tweaked to include a euro-carve-out after the credit's $420 million term loan B had been oversubscribed by investors earlier in the month. A banker explained that the loan...

Cortec Group Portfolio Co. Seeks Refinancing.(Brief Article)
May 17, 2004... After launching syndication of a $210 million leveraged buyout deal for NEP Broadcasting last Tuesday (BLR, 5/10), Wachovia Securities kept the ball rolling on Wednesday by also launching syndication of a $160 million refinancing for AXIA, a...

NCI Builds New Credit Package.(NCI Building Systems )(Brief Article)
May 17, 2004... Wachovia, with co-arranger Bank of America, launched syndication of a $325 million refinancing for NCI Building Systems last Thursday. The deal includes a $200 million, six-year institutional term loan priced at Libor plus 225 basis points and...

Mark-it Partners Accesses More Clients Through Totem Purchase.(Totem Market Valuations Limited)(Brief Article)
May 17, 2004... London-based Mark-it Partners, a credit-pricing information company, announced plans to acquire OTC derivative consensus valuations provider, Totem Market Valuations Limited. The move, which represents Mark-it's first shift into new areas such...

Citi Plays Musical Chairs With New Staff Appointments.(Brief Article)
May 17, 2004... Michael Mauer of Citigroup was promoted to become the firm's global head of loans last week, according to a source. The position was available after Chad Leat, the former head of loans and co-head of leveraged finance, moved into the position...

Lean Times For HY Companies As Low-Carb Diet Takes Off.(high yield)
May 17, 2004... It could come to be known as the Twinkie defense. Top executives from the nation's well-known food and restaurant brands are beginning to warn investors the low-carb craze sweeping America might impact their companies' fiscal health with...

Prudential Carves Niche With Replacement Manager Biz.
May 24, 2004... Equity holders in a fund often seek out replacement managers for ailing collateralized debt obligations (CDOs) based on the strength of the replacement portfolio managers track record. But rarely, if ever, has a firm established a distinct...

Issuers Look To Loans As Rates Rise.
May 24, 2004... Even the diehard high yielders those who stand staunchly by their asset class through thick and thin acquiesce that the whopping $3 billion that left high yield mutual funds over the past two weeks is a sign that high yield debt could be more...

Euro/US CLOs Have Diverging Paths.(collateralized loan obligation)
May 24, 2004... As Europes bank debt market grows, US loan market players have been paying closer attention to the potential for future investment opportunities on the continent, especially within the European collateralized debt obligation (CDO) market. And...

Second Lien/Revolver Combo Pitched For Harry & David Buyout.(Brief Article)
May 24, 2004... UBS was scheduled to launch syndication of a $235 million credit last Thursday for Bear Creek Corp., according to an investor. The deal will back the buyout of the Medford, Ore.-based company by private equity firm Wasserstein & Co. for $260...

BNP Paribas Shops MD Beauty.(Brief Article)
May 24, 2004... BNP Paribas came to market with an $80 million credit last Tuesday for MD Beauty, a San Francisco-based makeup company. The deal includes a $15 million revolver and a $45 million first lien term loan, both priced at Libor plus 425 basis points,...

BofA To Syndicate Facility For Wet Wipe Co.(Bank of America)(Brief Article)
May 24, 2004... Bank of America is scheduled to launch syndication today of a $135 million credit for Nice-Pak Products, the largest manufacturer of pre-moistened wipes. The credit includes a four-year, $25 million revolver priced on a grid in the Libor plus...

Appleton Papers In Market With Refi Package.
May 24, 2004... Bear Stearns is in the market with a $375 million credit for Appleton Papers, a developer and manufacturer of specialty-coated paper products. The deal includes a six-year, $250 million institutional term loan and a five-year, $125 million...

Wachovia, JPM Roll Out US Oncology Deal.(Brief Article)
May 24, 2004... Wachovia Securities and JP Morgan launched syndication last Wednesday of a $500 million credit for US Oncology. The credit includes a $400 million term loan B and a $100 million revolver. Price talk is in the Libor plus 250 basis point range....

Transport Industries Seeks New Credit.(Brief Article)
May 24, 2004... Wachovia also launched syndication last Thursday of a $160 million credit facility for Transport Industries. The deal includes a five-year, $50 million revolver and a six-year, $110 million term loan, both priced at Libor plus 325 basis points....

Oracle Continues To Push For PeopleSoft Takeover, May Seek More Financing.(Brief Article)
May 24, 2004... Oracle Corp. is remaining steadfast in its quest to take over computer software rival PeopleSoft. The companies face an antitrust trial next month that could determine if the merger is allowed under US antitrust laws. In support of its...

Galbraith Departs Morgan Stanley, Martin Fills Void.(Brief Article)
May 24, 2004... Lucy Galbraith, the former head of loan syndications in New York for Morgan Stanley, has left the firm. Galbraith, who departed the firm last month for personal reasons, is not expected to move to another firm and she may still do advisory work...

Asset-Backed Lending Opportunities Emerge In The EU.
May 24, 2004... Compared to the US, where asset-based lending (ABL) is big business, the European market has a long way to go. As a widely accepted form of middle-market financing, thousands of ABL transactions close each year in the US. Meanwhile, the...

Non-Core European LBOs Increase As EU Expands.
May 31, 2004... As the European Union continues to welcome new members into its fold, so leveraged buyout (LBO) issuance from non-core European countries is likely to increase in the coming years, according to Fitch Ratings. In fact, driven largely by...

Investors Rub Hands At Directories Deals.
May 31, 2004... Directories businesses, a traditional darling of the debt markets with their dependable cash flow and stable business models, are becoming active. That has led some market players to wonder if that could translate to more deals for the bank...

Mixed Response To FRNs In Europe.(Floating-rate notes)
May 31, 2004... Floating-rate notes (FRNs) have been a prominent part of the US high yield market this year, as investors look for ways to protect themselves against rising interest rates. Twenty FRNs have priced in the US to date this year, including deals...

Banks Shift Celanese Debt To 2nd Lien As HY Demand Wanes.(high yield)
May 31, 2004... Morgan Stanley and Deutsche Bank shopped a new $250 million second lien carve-out for German chemical company Celanese AG's buyout financing package last week. The tranche was created after the same amount was subtracted from a corresponding...

Keystone Foods Term Loan Oversubscribed, Pricing Tightened.(Brief Article)
May 31, 2004... Investors oversubscribed the $280 million term loan for Keystone Foods last week, causing lead arranger Deutsche Bank to tighten price talk from Libor plus 250 basis points to Libor plus 225 basis points, according to one investor. The credit,...

Wachovia Increases Rate On AXIA Dividend Refinancing.(Brief Article)
May 31, 2004... Pricing for Axia's $160 million credit increased last week - lead arranger Wachovia Securities upped the deal's rate by 50 basis points from Libor plus 350 basis points to Libor plus 400 basis points, according to an investor. The credit...

Directed Electronics Recap Hits Market.(Brief Article)
May 31, 2004... Wachovia and CIBC World Markets are in the market with a $156 million dividend recapitalization for Directed Electronics. The credit includes a $25 million, five-year revolver priced at Libor plus 350 basis points and a $131 million, six-year...

Dynegy Term Loan Flexes Up, Fills Out.(Brief Article)
May 31, 2004... Lehman Brothers and JP Morgan flexed up pricing in order to fill out the $600 million term loan for Dynegy last week. The arrangers increased the loan's rate from the Libor plus 325 to 350 basis point range up to Libor plus 400 basis points, a...

Goldman, Citi Syndicate Autocam Euro/USD Deal.(Brief Article)
May 31, 2004... Goldman and Citi were in the market last week with a $158 million credit for Autocam Corp., a manufacturer of machine-tooled precision components for the automotive and medical device industries. The credit includes a $50 million revolver, a...

An Omnicare/NeighborCare Merger Could Spur Financings, Ratings On Watch.
May 31, 2004... Following Omnicare's all-cash $1.5 billion bid for NeighborCare last week, S&P placed both companies' credit ratings on watch with negative implications. S&P said the "pro forma combination is likely to have a markedly weaker financial...

Lehman Brothers Closes On European Mezzanine Fund.
May 31, 2004... Business abroad is not only a hot phenomenon for the private placement market, it is an area mezzanine investors - seen as competitors to senior note lenders - are interested in too. Last week, Lehman Brothers announced it has finished raising...

HY Loan-Backed CDOs Dominate Forward Pipeline.(high yeild)(collateralized debt obligation )
May 31, 2004... A slew of loan-backed deals are circulating the collateralized debt obligation (CDO) market, with about $3.7 billion of visible cash transactions in the pipeline from both European and US issuers. This represents more than 27% of the new issue...

Calpine Power Plant Project Loan Only Half Filled.
May 31, 2004... Lack of access to parent company assets in a default scenario caused some investors to pass on a $665 million term loan for Calpine Corp.'s Rocky Mountain and Riverside energy centers last week. Instead, the deal is only secured by the power...