Bank Loan Report articles from May 2006

Bank Loan Report archives from May 2006

Investors Cringe As Covalence Seeks To Shed Covenants.
May 8, 2006... Buy-side accounts were none too pleased after a lender call last Wednesday during which agent bank Bank of America proposed stripping the financial covenants from Covalence Specialty Materials Corp.'s recently inked institutional term loan and...

Supreme Court Rejects Owens Petitions.(Owens-Corning Fiberglas Corp.)
May 8, 2006... The US Supreme Court ended the year-and-a- half-old legal battle over the proposed use of substantive consolidation in the Owens Corning bankruptcy reorganization on May 1 when it rejected two petitions asking it to review a ruling by the US...

Sell-Side Set To Sign Off On MNPI Policy.(material non-public information )
May 8, 2006... A group comprised of sell-side market constituents is expected to sign off on a set of principles intended for institutions that play in both the loan and public securities markets. The principles, which address the handling of material...

GM Contemplates Secured Facility; Revolver Rises In Trading.(Bids on General Motors Corp.'s (GM))(Brief article)
May 8, 2006... Bids on General Motors Corp.'s (GM) existing $5.6 billion unsecured revolver rose in secondary trading last Wednesday after the auto maker's treasurer disclosed at an investor conference that it is reviewing options to amend or replace the loan...

Investors Mull Over Supervalu Mega Deal.(Supervalu will finance the proposed acquisition of supermarket chain Albertson.)(Brief article)
May 8, 2006... Last week, Supervalu began shopping the institutional tranche of its $4 billion loan package to finance the proposed acquisition of supermarket chain Albertson's. Price talk for the $750 million, seven-year term loan B went out at Libor plus...

Hanger Seeks Refi.(Hanger Orthopedic Group plans to tap the loan market)(Brief article)
May 8, 2006... Hanger Orthopedic Group plans to tap the loan market for a $75 million revolver and a $230 million term loan in connection with a planned refinancing. Proceeds from the credit facility, a proposed $190 million senior unsecured bond offering and...

Cebridge Line Frees To Trade.(The secondary market got an infusion of nearly $3 billion of Cebridge's loans)(Brief article)
May 8, 2006... The secondary market got an infusion of nearly $3 billion of Cebridge's loans early last week after the company's first and second liens freed to trade. There was said to be a fair amount of trading activity on the loan, which had been revamped...

GSC Raises Funds For New CLO.(GSC Partners has completed fund raising for its newest collateralized loan obligation (CLO))(Brief article)
May 8, 2006... Last week, GSC Partners, which manages nearly $5 billion in collateralized debt obligation assets, announced it had completed fund raising for its newest collateralized loan obligation (CLO), a $413 million vehicle that will invest chiefly in...

RBS Recruits DrKW's Duetoft.(appointed Tom Duetoft by Royal Bank of Scotland as European head of loan trading and distribution )(Brief article)
May 8, 2006... The Royal Bank of Scotland has appointed Tom Duetoft as European head of loan trading and distribution within the debt markets business. He will report to David Bassett, global head of loan markets, and Stewart Booth, head of credit trading for...

O'Melveny & Myers Hires Two For Corporate Finance.(appointed Gregory Ezring and Monica Thurmond by O'Melveny & Myers as partners in the firm's corporate finance )(Brief article)
May 8, 2006... O'Melveny & Myers has hired Gregory Ezring and Monica Thurmond, both formerly of Latham & Watkins, as partners in the firm's corporate finance practice in New York. Ezring represents private equity funds and corporations in leveraged finance...

Goodwin Procter Opens California Offices.(Law firm Goodwin Procter recently announced that it has opened offices in Los Angeles and San Francisco)
May 8, 2006... Law firm Goodwin Procter recently announced that it has opened offices in Los Angeles and San Francisco. The new California platform will feature a real estate capital markets practice, as well as a complex litigation practice. The platform is...

Ratings Movers: Avnet Up/Ties To GM Sink American Axle.
May 8, 2006... Avnet's $500 million unsecured revolver moved one notch closer to investment grade last week after Fitch Ratings upgraded the loan - and the company's issuer default rating - to BB+ from BB. The outlook is positive. Fitch said the upgrade...

Top-Heavy Debt Structures Could Pervade The Next Downturn.(leveraged bank loan market continues to take business from the high yield bond market)
May 8, 2006... As the leveraged bank loan market continues to take business from the high yield bond market, many speculative grade companies may end up with a heftier portion of their debt at the senior level. This has sparked worries among high yield...

JPMorgan: Increased Investment Overlap Seen Among US CLOs.(collateralized loan obligation (CLO) managers on their way to ramp up the deals, as analysed by JP morgan)
May 8, 2006... Perhaps not surprisingly, collateralized loan obligation (CLO) managers last year found themselves dipping into the same pot of securities in order to ramp up their deals at a higher rate than in recent years, according to a recent analysis by...

Rising Rate Of Libor Has Yet To Hurt Second Lien Loan Issuance.(London Interbank Offered Rate)
May 15, 2006... The relentless rise of the London Interbank Offered Rate (Libor) so far this year is causing players in the bank loan markets to wonder whether their sectors' infatuation with products pegged to interest rates, such as red hot second lien...

Avenue Capital Group Closes Third CLO.(collateralized loan obligation )
May 15, 2006... Dick D'Addario, senior portfolio manager at the New York-based investment firm Avenue Capital Group, and his colleagues have just closed a new $500 million collateralized loan obligation (CLO), their company's third such vehicle thus far. ...

LSTA, BMA Fine Tune Model NOL Order.(Loan Syndications And Trading Association)(Bond Market Association)(net operating loss)
May 15, 2006... Two years after its initial release to the debt markets, The Bond Market Association (BMA) and The Loan Syndications And Trading Association (LSTA) have decided to fine tune the model net operating loss (NOL) order for handling tax credits...

Vanguard Car Rental Takes Second Shot At Completing Facility.(Goldman Sachs and JPMorgan were scheduled to have launched a $975 million credit facility for Vanguard Car Rental USA Holdings )
May 15, 2006... Goldman Sachs and JPMorgan were scheduled to have launched a $975 million credit facility for Vanguard Car Rental USA Holdings last Friday. The deal comprises an $800 million term loan due 2013, and a $175 million revolver due 2012. Price talk...

Bank Duo Launches United Agri Products.(GE Capital and Goldman Sachs launched syndication of an $850 million credit facility for United Agri Products (UAP))(Brief article)
May 15, 2006... GE Capital and Goldman Sachs launched syndication of an $850 million credit facility for United Agri Products (UAP) last Tuesday. The deal consists of a five-year, $675 million asset-based revolver priced at Libor plus 125 bps and a six-year,...

Credit Suisse Shops Ginn Line.(Brief article)
May 15, 2006... Credit Suisse launched syndication last Wednesday of a $675 million deal for real estate development and management firm Ginn Clubs & Resorts. The credit includes a five-year, $385 million term loan B, a five-year, $165 million, first lien...

GateHouse Media Seeks $762M In Loans.(Brief article)
May 15, 2006... GateHouse Media plans to raise approximately $762 million in debt financing, the Downers Grove, Ill.-based company announced last Thursday. The deal will comprise a $40 million revolver, a $570 million first lien term loan and a $152 million...

Highland Hires Eberlin As Euro Portfolio Manager.(Brief article)
May 15, 2006... Investment firm Highland Capital Management announced that it has hired Jean-Luc Eberlin as portfolio manager within the firm's European arm, Highland Capital Management Europe. Eberlin joins Highland from MetLife Investments, where he was a...

Tennenbaum Snags Imperial's Moyer.(Appointed Stephen G. Moyer as a director by Tennenbaum Capital Partners)(Brief article)
May 15, 2006... Tennenbaum Capital Partners has hired Imperial Capital's Stephen G. Moyer as a director. In his new position, Moyer - who was previously the director of research at Imperial, focusing on high yield, distressed, convertible, bank debt and equity...

CIT Launches Aerospace, Defense Finance Group.
May 15, 2006... CIT Group has launched a new aerospace and defense finance group that is headed by Patrick Henry Dowling, managing director and general manager. Dowling is responsible for originating corporate finance and advisory services with companies...

NewStar Opens San Francisco Office As Second CLO Nears.(NewStar Financial)
May 15, 2006... Middle market specialty finance company NewStar Financial has opened a new office in San Francisco in order to strengthen the firm's presence on the West Coast, specifically in California. The office is the fourth one opened by NewStar since...

Moody's To Provide Reports On CDO Individual Asset Exposure.
May 15, 2006... Moody's Investors Service said earlier this month that it will begin providing monthly reports on the individual asset exposures by collateralized debt obligation (CDO) category and vintage within 650 US cash flow transactions issued between...

Ratings Movers: Knology Tunes Up/Cumulus Media On Review.
May 15, 2006... Moody's Investors Service dealt video, Internet and telephony services company Knology a bank debt upgrade last week. The rating agency raised the ratings on the company's $173.6 million first lien term loan (outstanding as of December 31,...

Euro Market Pays Closer Attention To Key-Man Risk Among CDOs.(Collateralized debt obligations)(fund managers)
May 22, 2006... The collateralized debt obligation (CDO) business in Europe has been booming, and sources say new structures are announced almost every week. European market players believe the CDO business will continue growing, given the high level of...

Investors Mull Direction Of Loan Market.
May 22, 2006... Loan market players convened at Bear Stearns' 15th Annual Global Credit Conference in New York last week to mull over the state of the leveraged loan lending markets. In a panel moderated by Bram Smith, senior managing director at Bear Stearns,...

Revised CSFT Rules Still A Headache?(complex structured finance transactions)
May 22, 2006... Having gotten an earful from Wall Street about a proposal that, if implemented, could massively increase financial institutions' regulatory obligations for any structured deal that fits under a broad umbrella category of "complex structured...

MD Beauty Taps Market For Upsized Credit To Back Dividend.
May 22, 2006... BNP Paribas hit the loan market last Thursday with an upsized credit facility for MD Beauty that would add $107 million in first lien debt and $68 million in second lien debt to the company's existing bank facility. The upsized first lien loan,...

Quality Home Brands Seeks $420M In Loans.(home decor and building products)(Brief article)
May 22, 2006... Bear Stearns and BNP Paribas launched syndication last Thursday of a $420 million credit for Quality Home Brands Holdings, a company that serves the lighting, electrical wholesale, home improvement, home decor, and building products industries....

UBS, Merrill Launch Gulfside Casino Deal.(Grand Casino Gulfport)(Brief article)
May 22, 2006... UBS and Merrill Lynch launched syndication last Tuesday of a $230 million credit facility for Gulfside Casino Partnership. The deal includes a $185 million, six-year term loan priced at Libor plus 325 bps and a $45 million, five-year revolver...

PAETEC Line Emerges.(launched syndication of a $390 million credit facility)(Brief article)
May 22, 2006... Merrill Lynch launched syndication of a $390 million credit facility for Fairpoint, N.Y.-based PAETEC Corp. last Tuesday. The deal for the competitive local exchange carrier includes a $25 million revolver, a $240 million term loan B and a $125...

Babson Closes Fourth CDO Of CDOs.(collateralized loan obligation sector)(Brief article)
May 22, 2006... Babson Capital Management has closed the Connecticut Valley Structured Credit CDO III, a $400 million collateralized debt obligation (CDO) that will consist primarily of BBB rated CDO debt securities with a focus on the collateralized loan...

GSC Completes Euro CDO.(GSC Partners)(collateralized debt obligations)(DebtX)
May 22, 2006... GSC Partners, an alternative asset management firm that focuses on complex, credit-driven investment strategies, announced it has completed fund raising for its latest collateralized debt obligation (CDO) fund, GSC European CDO Fund III. ...

LSTA Recommends Memorial Day As Loan Holiday.(Loan Syndications and Trading Association )(Brief article)
May 22, 2006... The Loan Syndications and Trading Association (LSTA) stated that it recommends that US Memorial Day on Monday, May 29, 2006, be treated as a loan market holiday for purposes of calculating delayed compensation under LSTA standard forms of trade...

Plainfield Recruits Briscoe Team To Aid Direct Lending Biz.(Plainfield Asset Management)(Gregg A. Bresner )(Joseph T. O'Donnell, Jr)(Virginia A. Donner )(Brief article)
May 22, 2006... Plainfield Asset Management has expanded its direct lending business with the hiring of a five-person origination team. The team includes Gregg A. Bresner and Joseph T. O'Donnell, Jr., who were the co-portfolio managers and founders of the...

Carlyle Hires Stomber, Cottrell; Completes Mezz Fund.(John C. Stomber hired as a managing director)(Brief article)
May 22, 2006... The Carlyle Group announced last week that it has hired John C. Stomber as a managing director in the leveraged finance group in New York. Stomber previously worked at Cerberus Capital Management as a managing director focused on structured...

DB To Expand Leveraged Finance Americas Presence.(Deutsche Bank)(David Flannery )(Brief article)
May 22, 2006... Deutsche Bank announced last week the appointment of managing director David Flannery to a new role. Flannery will take over as head of leveraged capital markets in the Americas, a role encompassing both the underwriting and distribution of...

Ratings Movers: The Pantry Rises/Digital Hurts Kodak.
May 22, 2006... The Pantry received a bump up from Standard & Poor's last week, when the rating agency upgraded the convenience store operator's corporate credit rating to BB- from B+. At the same time, S&P elevated The Pantry's bank loan rating to BB from...

Taking Active Roles In Distressed Investments To Create Value.
May 22, 2006... With more and more hedge funds becoming active players in the distressed markets these days, paths to create value go well beyond just trading strategies. Increasingly, investors need to take an active role in managing an investment in order to...

Analysts And Investors Wonder What's Next For Delta Air Lines.
May 29, 2006... The airline industry appears on track to have its best year in ages, but analysts and investors are wondering whether the improved climate will be enough to buoy one of the sector's biggest wrecks, Delta Air Lines. Delta, which filed for...

Babson: Pioneer In CDO Of CDOs Market.(Babson Capital Management)(collateralized debt obligation)
May 29, 2006... With the launch of its third collateralized debt obligation (CDO) of CDOs, the $400 million Connecticut Value Structured Credit CDO III, Babson Capital Management has made yet another mark in what remains a niche market of the structured...

ISDA Template Boosts Recovery Swaps.(International Swaps and Derivatives Association )
May 29, 2006... The burgeoning credit derivatives market keeps sending out offshoots in new directions. Earlier this month, the International Swaps and Derivatives Association (ISDA) issued a new template for documenting recovery swaps - or recovery-lock...

ArvinMeritor Seeks Secured Line To Replace Unsecured Revolver.
May 29, 2006... JPMorgan and Citigroup launched syndication of a $1.05 billion senior secured credit facility for ArvinMeritor last Wednesday at a bank meeting in New York. The deal includes an $850 million revolver and a $200 million term loan B; price talk...

Reynolds American Wraps Up.(credit for tobacco company )(Brief article)
May 29, 2006... Lehman Brothers, JPMorgan, Citigroup and GE Capital were set to wrap up the $2.1 billion credit for tobacco company Reynolds American at press time last Thursday. Pricing on the deal's $1.55 billion term loan B moved downward from original...

Credit Suisse Shops Canon Credit.(acquisition of eight trade shows)(Brief article)
May 29, 2006... Credit Suisse launched syndication last Tuesday of a $168 million credit facility for Los Angeles-based Canon Communications. The deal includes a $120 million term loan B priced at Libor plus 300 bps and a $48 million second lien term loan...

Duo Syndicates AttachmateWRQ.(credit facility for software company)(Brief article)
May 29, 2006... Credit Suisse and UBS launched syndication last Tuesday of a $505 million credit facility for software company AttachmateWRQ. The deal comprises a $320 million, six-year term loan B, a $165 million, six-and-a-half-year second lien term loan,...

Coldren To Seek $590M In Loans.(Coldren Oil and Gas Co)(Brief article)
May 29, 2006... Credit Suisse and Bank of America plan to arrange a $590 million credit facility for Coldren Resources, a subsidiary of First Reserve portfolio company Coldren Oil & Gas Co. The deal, scheduled to launch syndication during the week of June 5,...

Natural Products To Tap Market For Divi Recap.(Credit Suisse Group.)(Natural Products Group.)(CIBC World Markets )(Brief article)
May 29, 2006... Credit Suisse and CIBC World Markets are scheduled to launch syndication on June 1 of a $565 million dividend recapitalization facility for Natural Products Group, a portfolio company of private equity firm Harvest Partners. The credit will...

LSTA Issues PSR Exposure Draft.(Loan Syndications and Trading Association)(physical settlement rider)(Brief article)
May 29, 2006... The Loan Syndications and Trading Association (LSTA) has issued an exposure draft of a physical settlement rider (PSR) to the syndicated senior secured loan credit default swap standard terms supplement, also known as the LCDS confirm. The...

NewStar Opens Chicago Office.(NewStar Financial)(Brief article)
May 29, 2006... Closely following the opening of its San Francisco office earlier this month (BLR, 5/15/06), NewStar Financial announced last week that it has opened a Chicago office as well. This expands the company's presence to five cities - in addition to...

CIT Hires Four For Middle Market M&A.(CIT Group)(Randal Stephenson hired as a head)(Brief article)
May 29, 2006... CIT Group has hired Randal Stephenson to head the firm's middle market M&A Group, and R. Thomas Hawes, James Cotter and Larkin Fowler were hired as directors in the group. Stephenson was most recently at Jefferies & Co., where he worked as a...

Wachovia Appoints Alexander, Lang To Media Group.(Mike Alexander appointed as a managing director)(Reggie Lang appointed as a director)(Brief article)
May 29, 2006... Wachovia Securities announced the appointment of Mike Alexander, a managing director, and Reggie Lang, a director, to the firm's media and communications investment banking group. Alexander and Lang will report to John White, head of the group....

Second Lien, Sponsor-Backed Divi Volume Up In 2006.(Brief article)
May 29, 2006... US second lien loan volume is up 83% compared with 2005, according to Dealogic, reaching $9.9 billion in 2006 year-to-date through May 23. The average second lien deal size has also increased to $142 million this year, up from $99 million for...

Fitch Upgrades PPM America.
May 29, 2006... Fitch Ratings raised the leveraged loan collateralized debt obligation (CDO) asset manager rating of PPM America last week to CAM1 from CAM2. The upgrade reflects the firm's composite score of 1.5, according to Fitch, which took into account...

Ratings Movers: Silgan Gets Boost/Caribbean Pushes Leverage.
May 29, 2006... Moody's Investors Services upgraded Silgan Holdings' bank debt last week. The North American manufacturer of metal and plastic consumer goods packaging products saw its corporate family rating as well as the ratings of its $450 million...