Bank Loan Report articles from November 2005

Bank Loan Report archives from November 2005

Mezz Sees Upsurge In Issuance Despite Popularity Of 2nd Liens.(Mezzanine financing)
November 7, 2005... The advent of the second lien loan product, which has become increasingly popular among issuers and yield-hungry investors, has not been kind to the US mezzanine market in recent years. However, in recent months, there has been a notable uptick...

Asian LBO Mart Steadily Gains Momentum.(leveraged buyout )
November 7, 2005... The Asian syndicated loan market has had a strong year, with healthy issuance volumes and pricing on deals tightening to similar levels as in the US and Europe. Banks are in tight competition for mandates, and with a generally benign macro...

AlixPartners Targets Japanese Market.
November 7, 2005... Although corporate turnarounds have taken place in the US and in Europe for quite some time, the notion of fixing the fundamental business model of a struggling company is a fairly new concept in Japan. Historically, the practice for Japanese...

JPM, CSFB Launch Syndication Of Accellent To Back LBO.(Credit Suisse First Boston L.L.C.)(Kohlberg, Kravis, Roberts & Co.)(J.P. Morgan Chase and Co.)(leveraged buyout )(Brief Article)
November 7, 2005... Last Wednesday, JPMorgan and Credit Suisse First Boston hit the market with a $450 credit facility in connection with the leveraged buyout (LBO) of Accellent by Kohlberg Kravis Roberts & Company (KKR). The BB-/B2-rated deal is split between a...

Clayton Divi Deal On Tap For Tuesday.(Clayton Holdings)(Brief Article)
November 7, 2005... On November 8, BNP Paribas is slated to launch syndication of a $50 million, six-year revolver and a $150 million, six-year term loan B in connection with a dividend recapitalization deal for Clayton Holdings, according to a banker. Price...

Bank Trio Pitches Team Health To Buyside.(Blackstone Group L.P., J.P. Morgan Chase and Co. and Lehman Brothers Holdings Inc. finance for Merrill Lynch and Company Inc.)(Brief Article)
November 7, 2005... Last Tuesday, JPMorgan, Lehman Brothers and Merrill Lynch began shopping a $500 million credit facility in connection with the LBO of Team Health by The Blackstone Group. The deal includes a $125 million, six-year revolver and a $375 million,...

UBS Pitches PinnOak Dividend.
November 7, 2005... Sole lead UBS is in the market with a $175 million credit facility for PinnOak Resources, a portfolio company of Questor Management Company, that is split between a $50 million, six-year revolver and a $125 million, seven-year term loan. Price...

KKR, Silver Lake Hit Mart For Avago Loans.(Kohlberg Kravis Roberts and Company, Silver Lake Partners)(Brief Article)
November 7, 2005... Last week, Lehman Brothers and Citigroup launched syndication of a $975 million credit facility to finance Kohlberg Kravis Roberts & Company's and Silver Lake Partners' proposed acquisition of Agilent Technologies' semiconductor products group,...

Targa Closes, Trades Above Par.(Targa Resources, Dynegy Inc.)(Brief Article)
November 7, 2005... The institutional term loan tranche of the credit facility to back Targa Resources' $2.35 billion acquisition of Dynegy's midstream natural gas business broke just north of par, with bids for the loan inching up to about 100.75 as of last...

JPM Shops FGX.(JPMorgan, FGX International )(Brief Article)
November 7, 2005... JPMorgan launched syndication of a $215 million bank deal for FGX International on October 28. The three-tranche deal - proceeds of which will be used, in part, to pay a dividend - includes a $15 million revolver due 2010, a $150 million first...

PE Firms To Acquire Susquehanna's Broadcasting Biz.
November 7, 2005... Cumulus Media announced last week that three private equity firms are set to acquire Susquehanna Pfaltzgraff Company's radio broadcasting business for $1.2 billion. Bain Capital, The Blackstone Group and Thomas H. Lee Partners will form Cumulus...

Moody's: Loan Default Rate Rose In October.(Brief Article)
November 7, 2005... The speculative grade loan default rate rose to 1.8% for October, up from 1.5% in September, according to Moody's Investors Service. Four Moody's-rated issuers defaulted on a combined $3.7 billion in loans. A majority of the default volume can...

Fitch Affirms Harbourmaster's CDO Manager Rating.
November 7, 2005... Last week, Fitch Ratings affirmed its "CAM2" collateralized debt obligation (CDO) asset manager rating for Dublin-based Harbourmaster Capital Management, although the company's composite rating rose to 1.88 from 2.01. Harbourmaster is expected...

Epp Joins GE CF's Minnesota Office.(Sean Epp )(GE Commercial Finance Corporate Lending )(Brief Article)
November 7, 2005... GE Commercial Finance Corporate Lending (GE CF) announced on October 28 that Sean Epp was named vice president of originations. Epp, who is based in the firm's Minneapolis office, will cover Iowa, Nebraska, North Dakota, South Dakota, Montana...

DrKW Bulks Up Corporate Finance, Origination.(appointments)(Brief Article)
November 7, 2005... Last week, Dresdner Kleinwort Wasserstein (DrKW) announced three new senior appointments to its corporate finance and origination group in New York. Kaukab N. Chaudry joined the media group as a managing director on October 17. Chaudry...

Delphi Loan Helps Keep CLO WAS Tests Above Water.(collateralized loan obligation, weighted average spread)
November 7, 2005... In this era of ultra-tight spreads, a first lien loan with a coupon of Libor plus 650 basis points (bps) is like a diamond in the rough. This is why Delphi Corp.'s $1 billion term loan - which not only priced at Libor plus 650 bps, but it was...

Ratings Movers: Fitch Hikes Up Levi/Alliance Slips To B+.
November 7, 2005... Levi Strauss & Company's bank debt has moved into the double-B category, as Fitch Ratings boosted its ratings on the San Francisco-based company's $650 million asset-based revolver and $500 million term loan by two notches to BB- from B. ...

Steering Through Ch. 11: Real World' Lessons In Distressed Debt.
November 7, 2005... by Kevin Prokop, director, Questor Management Company With a well-established Bankruptcy Code and a sophisticated market of bankruptcy advisors, navigating through Chapter 11 as a secured or unsecured creditor is supposed to be a reasonably...

Some Institutional Deals Struggle As Market Gets A Bit Softer.
November 14, 2005... Ever since the high yield bond market hit a rough patch earlier this fall, bank loans emerged as a preferred form of debt financing for many speculative grade issuers. However, in recent weeks, some companies eyeing bank debt financing have...

Competition May Hurt Retail Holiday Profits.
November 14, 2005... For this coming holiday season, promotional pricing - and not penny-pinching consumers - might deal the harshest blow to retailer profits. Indeed, a primary question on the minds of retail analysts is: "How promotional will the upcoming...

Fed: Loan Demand Rising At Slower Pace.
November 14, 2005... The demand for commercial and industrial (C&I) loans continued to increase during the third quarter 2005, although not at the same clip as it had in 2004, according to the Federal Reserve Board's quarterly Senior Loan Officer Opinion Survey on...

PE Firms Tap Investment Grade Mart To Buy Stake In GMAC Unit.
November 14, 2005... Six banks held a meeting last Monday to launch syndication of $6 billion in bank loans in connection with an investor group's proposed purchase of a 60% stake in General Motors Acceptance Corp.'s (GMAC) commercial mortgage subsidiary, GMAC...

CSFB Leads Recycled Paper Greetings, Blackboard Deals.(Credit Suisse First Boston L.L.C.)(Brief Article)
November 14, 2005... Credit Suisse First Boston hit the market last week with a number of loan deals, including those for Recycled Paper Greetings (RPG) and Blackboard. The $217 million credit facility for RPG is split among a $20 million, five-year revolver;...

JPM, Deutsche Bank Sell Dex Buyout Loans.
November 14, 2005... JPMorgan and Deutsche Bank are in the market with two add-on loans in connection with R.H. Donnelley Corp.'s proposed $4.2 billion acquisition of Dex Media. The financing package includes a $350 million proposed add-on term loan D-1 for...

JPM, Citi Pitch Constellation Brands.(JPMorgan)(Brief Article)
November 14, 2005... Last week, JPMorgan and Citigroup launched syndication of a $1.2 billion credit facility for Constellation Brands. The deal will support the company's plans to take over Vincor International. The credit facility consists of a $300 million,...

Banks Syndicate SS&C Credit.(Brief Article)
November 14, 2005... JPMorgan, Wachovia Securities and Bank of America are in the market with $350 million in bank loans to finance The Carlyle Group's leveraged buyout (LBO) of SS&C Technologies. The bank deal is split among a $75 million, six-year revolver; a...

Bank Duo Sells Clark American Facility.(Brief Article)
November 14, 2005... On November 7, Bear Stearns and JPMorgan hit the market with a $480 million credit facility to support M&F Worldwide Corp.'s acquisition of Clarke American. The deal is split between a $40 million, five-year revolver and a $440 million,...

Banks Hired For Linens, La Quinta LBOs.(Brief Article)
November 14, 2005... Apollo Management has tapped Bear Stearns and UBS to provide debt financing for its LBO of Linens 'n Things, according to a statement released by Linens last Tuesday. The $1.3 billion LBO of the Clifton, N.J.-based home goods retailer is...

LSTA: Thanksgiving Should Be A Loan Market Holiday.(Loan Syndications and Trading Association )(Brief Article)
November 14, 2005... The Loan Syndications and Trading Association (LSTA) is recommending that Thanksgiving Day, which is Thursday, November 24, be treated as a loan market holiday for purposes of calculating the start date for delayed compensation under the LSTA's...

Fitch Upgrades Pilgrim CLO.
November 14, 2005... On November 4, Fitch Ratings upgraded its ratings of two of three tranches of ING Investment Management's Pilgrim CLO 1991-1, which is currently in the amortization period. The collateralized loan obligation's (CLO) $60 million of class B notes...

IGC Announces New Management Appointments.(Intermediate Capital Group)(Brief Article)
November 14, 2005... Last week, Intermediate Capital Group (ICG), a European mezzanine finance firm, announced that Christopher Evain, Francois de Mitry, Andrew Phillips and Paul Piper have been named managing directors by the firm's board. "The additional...

S&P Leveraged Loan Default Rate Inches Up.(Standard & Poor's Corp.)(Brief Article)
November 14, 2005... Standard & Poor's' US leveraged loan default rate through October rose to 1.73% from 1.34% at the end of September. S&P forecasts its US speculative grade default rate will average 2.5% over the next four quarters, and it should reach 2.8%...

KeyBank Appoints Lawrence To Head Pacific Northwest.(Wes Lawrence)(Brief Article)
November 14, 2005... KeyBank announced last week that it has appointed the bank's Oregon district president, Wes Lawrence, to a newly created position as president of the Pacific Northwest region. Lawrence will be based in Portland, Ore., and he will report to...

UBS Appoints Lee To Head Euro HY, Mezz.(UBS AG)(Lok Lee )(Brief Article)
November 14, 2005... UBS has appointed Lok Lee as managing director and head of the European high yield and mezzanine capital markets team. Based in London, Lee will report to Edward Massaro, global head of leveraged finance and high yield loan capital markets. ...

Ratings Movers: Host Marriott Up/Eckerd Acq. Sinks Jean Coutu.
November 14, 2005... Real estate investment trust (REIT) Host Marriott Corp., an owner of luxury and upscale hotels and resorts, received an upgrade last week, as Standard & Poor's boosted a few of the REIT's ratings, including that of its $575 million revolver....

European Loan Market Becomes More Credit Conscious.
November 14, 2005... No market cycle, be it good or bad, can last forever. That's why European loan market players are well aware that the strong activity seen in their space this year could very well abate come 2006. But for now, bankers and investors are...

Issuers Continue To Increase Bank Debt, Decrease HY Debt.(Targus Group International, Team Health)
November 21, 2005... Last week, Targus Group International, Team Health and Accellent became the latest companies to jump on the bandwagon of issuers increasing their bank debt and decreasing their bond debt. This is as conditions remain soft in the high yield...

M&A Deals Bring New Biz To ABL Mart.(mergers and acquisitions, asset-based loan )
November 21, 2005... The red-hot M&A and leveraged buyout (LBO) market has certainly contributed to the strong issuance seen in the broader leveraged loan market this year. But it looks like such activity is benefiting the asset-based loan (ABL) market as well....

Merrill Zeros In On Lucrative Businesses.(Merrill Lynch )
November 21, 2005... In August 2003, when Greg Fleming became co-head of investment banking at Merrill Lynch along with Dow Kim, Merrill's investment banking operation and the firm in general were in some disarray. New CEO Stan O'Neal had just finished slashing...

Lehman Syndicates CARS Deal To Support Buyout By DRA.(Lehman Brothers Holdings Inc., DRA Advisors, Capital Automotive REIT)(Brief Article)
November 21, 2005... Last week, sole lead Lehman Brothers held a bank meeting to launch syndication of about $1.65 billion in loans to back the buyout of Capital Automotive REIT's (CARS) by DRA Advisors. The facility is split between a $250 million, four-year...

PGS Hits Market For $1B Refi.(Petroleum Geo-Services )(Brief Article)
November 21, 2005... Last week, Lysaker, Norway-based Petroleum Geo-Services (PGS) hit the market with a $1 billion refinancing deal split between a $150 million, five-year revolver and an $850 million, seven-year term loan. Proceeds will go to retire its $746...

Scotia Capital Sells Sears Canada Loans.(Brief Article)
November 21, 2005... Last week, Scotia Capital began pitching a two-tranche deal for Sears Canada to US and Canadian banks and institutional investors. The deal is split between a $300 million Canadian dollar-denominated, five-year revolver and a US...

It's Time For A Divi Deal At Eight O' Clock Coffee.(Brief Article)
November 21, 2005... Last Wednesday, BNP Paribas hit the market with a $115 million credit facility in connection with a dividend recapitalization deal for Eight O' Clock Coffee. The deal is split among a $10 million, six-year revolver; a $70 million, six-year term...

Pliant Gets Commitment For New Revolver.(Brief Article)
November 21, 2005... Last week, Schaumburg, Ill.-based Pliant Corp. announced that it had received a commitment from GE Commercial Finance and Morgan Stanley for a $140 million revolver that would replace the company's existing $105 million revolver. Because of the...

S&P Rates Katonah VII CLO.
November 21, 2005... Last week, Standard & Poor's assigned preliminary ratings to four tranches of notes to be issued by Katonah Debt Advisors' newest collateralized loan obligation (CLO), Katonah VII CLO, which closed November 15. The $267 million of class A...

Moody's Offers Worksheet To Determine Ratings.(Moody's Investors Service)(Brief Article)
November 21, 2005... As a follow-up to introducing its joint-default analysis (JDA), Moody's Investors Service announced last week that it has made available a worksheet for performing calculations to determine ratings. The spreadsheet tool, called Joint-Default...

-ST_BY-.(Refco Inc. appoints Robert N. Dangremond)(Brief Article)
November 21, 2005... AlixPartners' Dangremond Named Interim CEO For Refco Refco, the bankrupt foreign exchange and commodities broker currently embroiled in an accounting scandal, has named Robert N. Dangremond, managing director at turnaround firm...

Evercore Hires Microsoft's Roberts.(Evercore Partners, Brian K. Roberts)(Brief Article)
November 21, 2005... Evercore Partners announced last week that it has hired Brian K. Roberts as a managing director to establish the firm's San Francisco-based corporate advisory services business. Roberts will work with Michael Price, senior managing director and...

Key Appoints Dulan As Rocky Region Prez.(KeyBank, Michael H. Dulan )(Brief Article)
November 21, 2005... KeyBank announced last week that it has appointed Michael H. Dulan to the newly created position of president of the Rocky Mountain region. Based in Denver, Dulan will report to George E. Emmons, Jr., president of Key Community Bank. In...

Ratings Movers: C&D Cleans Up Ratings/Merisant Falls To CCC+.(Church and Dwight Co.)
November 21, 2005... Church & Dwight Co.'s efforts to clean up its capital structure resulted in an upgrade from Standard & Poor's last week. The Princeton, N.J.-based maker of cleaning and personal care products, some of which are under the Arm & Hammer brand...

Blockbuster Nets Third Amendment, But Loan Ratings Fall To B-.
November 21, 2005... Blockbuster was able to amend its credit agreement for the third time last week after it completed the necessary sale of 150,000 shares of 7.5% convertible perpetual preferred stock. The $150 million raised from the sale will be used, in part,...

Koch/Georgia-Pacific Merger To Generate $11B In Loan Facilities.(Koch Industries Inc.)
November 28, 2005... The current market's high volume of leveraged buyout and M&A activity has generated several multi-billion dollar institutional loans this year - a $4 billion institutional loan for SunGard Data Systems is so far at the top of the list in terms...

Euro Retail LBOs May See Trouble In 06.(leveraged buyouts )
November 28, 2005... After a euphoric year for the leveraged finance business in Europe, analysts and investors there have begun to pay closer attention to the strengths and weaknesses of individual industries, and many have pointed to the retail sector as a...

Concerns Exist Over New Ch. 11 KERP Laws.
November 28, 2005... The key employee retention plan (KERP) is an animal with which many debt investors are quite familiar. For better or worse, KERPs have long been fixtures in top management pay packages during buyouts, bankruptcies, and even during business as...

Banks To Launch Syndication On Tuesday For Hertz LBO Deal.(leveraged buyout)(Brief Article)
November 28, 2005... A bank meeting to launch syndication of roughly $3.6 billion in bank debt in connection with the leveraged buyout (LBO) of Hertz Corp. is set for Tuesday morning, November 29, according to a source familiar with the deal. While details of...

Autocam Faces Potential Covenant Violation.(Brief Article)
November 28, 2005... The lower production volumes of original equipment manufacturers (OEMs) appear to be taking their toll on Autocam Corp. In a November 10 Securities and Exchange Commission filing, the company said that as of September 30, it was in...

Team Health, Polymer, Targus Hit Secondary Market.(Polymer Group Inc., Targus Group International)(Brief Article)
November 28, 2005... While secondary market activity was light last week due to the Thanksgiving holiday, there was some activity for a handful of deals that broke to trade, according to secondary market sources. The upsized $425 million institutional term loan...

JPM, BofA Shop Deal For SFX Spinoff.(SFX Entertainment, JPMorgan, Bank of America)(Brief Article)
November 28, 2005... SFX Entertainment is in the market with a B1/B+-rated $575 million credit facility via joint lead arrangers JPMorgan and Bank of America. The facility is comprised of a $250 million, six-and-a-half-year revolver and a $325 million,...

Rowe Nets Financing Commitment.(The Rowe Companies)(Brief Article)
November 28, 2005... Last week, The Rowe Companies announced that it had received a commitment letter from GE Commercial Finance for up to $60 million in debt financing, which the company expects will be split between a $50 million senior secured revolver and a $10...

Harris Nesbitt Hires BofA's Schubert.(Bank Of America, Eric Schubert)(Brief Article)
November 28, 2005... Last week, Harris Nesbitt, the US investment and corporate banking arm of BMO Financial Group, announced that Eric Schubert is coming on board as managing director and head of structured finance. He is joining Harris Nesbitt from Bank Of...

Wicks Names Black, Weston As Partners.(The Wicks Group of Companies, Daniel L. Black, Jamie M. Weston)(Brief Article)
November 28, 2005... Last week, The Wicks Group of Companies announced that Daniel L. Black and Jamie M. Weston were named partners in the firm. Wicks manages private equity funds invested in the communications, information and media industries. Black, who...

GE CF Media Creates Two New Positions And Leads Two Loans.(GE Commercial Finance)(Brief Article)
November 28, 2005... GE Commercial Finance's (GE CF) global media and communications division announced that it has created and filled two new positions that will focus on technological trends. The new hires, Robert C. Raciti and Ron Stevenson, will provide clients...

Ratings Movers: Regal Up/Pre-Paid Legal Down On Verdict.(Regal Cinemas Corp., Pre-Paid Legal Services Inc.)
November 28, 2005... Moody's Investors Service gave Regal Cinemas Corp. a good review on November 18, when it upgraded the Centennial, Colo.-based movie theater company's bank debt to Ba2 from Ba3. Moody's previously had the company on review for a downgrade....

Figuring Out How To Structure Foolproof Prepayment Premiums.
November 28, 2005... by Steven Ellis and Stephen Boyko, partners at Proskauer Rose Lenders often negotiate to receive a premium if their loans are paid off prior to their stated maturity. These prepayment premiums are designed to protect against a loss of...