Bank Loan Report articles from November 2006

Bank Loan Report archives from November 2006

United Subcontractors Fizzles On Launchpad.(credit facility for United Subcontractors)
November 6, 2006... Investors didn't appear shocked last week when lead arranger Goldman Sachs pulled from the shelves its $550 million credit facility for United Subcontractors (USI). Despite the market's apparent ability to absorb enormous amounts of paper,...

Auto Toll Rises As DURA Breaks Down.(DURA Automotive Systems)
November 6, 2006... An inability to pay its bondholders apparently led to the timing of DURA Automotive Systems's Chapter 11 filing Oct. 30. So it is likely that the company's bondholders and possibly other secured debt lenders won't be seeing payment anytime...

-ST_BY-.
November 6, 2006... (c) 2006 Bank Loan Report and SourceMedia, Inc. All Rights Reserved. http://www.bankloanreport.com http://www.sourcemedia.com

The New Order of Leveraged Finance.(financial products)
November 6, 2006... First of a two-part series Most days, John Ong, global head of high yield capital markets at BNP Paribas, deals with unrelentingly positive news. "It's getting a little boring," he says, "going to weekly market meetings and talking about...

Bear Stearns Places Bets On Greenwood.
November 6, 2006... Bear Stearns is in the market with a $265 million first lien term loan for Greenwood Racing. Proceeds from the new credit facility, along with internally generated cash, will be used to renovate and add gaming space to an existing racetrack...

Bank Group Shops Emdeon Acquisition.
November 6, 2006... Bear Stearns, Citigroup and Deutsche Bank are shopping a seven-year $755 million first lien term loan, a six-year $50 million revolver and a seven-and-a-half-year $170 million second lien term loan for Emdeon Business Services (EBS). Pricing is...

Bank Of America Seeks To Fund Crescent.
November 6, 2006... Bank of America is in the market with a $200 million revolver and $1.225 billion term loan B for Crescent Resources. Pricing for both tranches is at Libor plus 250 basis points (bps). The company is now owned by a recently formed joint...

Bank Duo Launches ACS Media.
November 6, 2006... Lehman Brothers and Wachovia are shopping a six-year $10 million revolver and six-year $130 million term loan B for ACS Media Canada. Pricing on both tranches is at Libor plus 250 bps. Proceeds from the facility will be used to finance ACS...

Banta Corp. Teams Up With UBS.(Alliances and partnerships)(Brief article)
November 6, 2006... UBS is in the market with a $465 million term loan and $50 million revolver for Banta Corp. Proceeds of the proposed facility will fund an approximately $390 million special shareholder dividend. The board approved payment on Sept. 13 2006, of...

Can Future CDO Success Be Predicted By The Past?(Collateralized loan obligations)
November 6, 2006... Wachovia Securities CDO analysts last month sought to find a new way to answer an old question: Is there a method to project future new-issue CDO performance using historical data? Their ultimate finding was yes, although with some caveats. ...

Emporia Opens Los Angeles Office.(Collateralized loan obligations)(Brief article)
November 6, 2006... Cohen & Company last week opened a Los Angeles office for its middle market loan and CLO collateral management unit Emporia Capital Management. Cohen snagged David Ligon and Gary Kirshner from Union Bank of California, where they were group...

International Investors Opt For Europe's Gov Bonds And CDOs.(Collateralized debt obligations)
November 6, 2006... Non-E.U. investors are most present in Europe's government bond and CDO markets, according to a recent survey of investor trends in European debt by The Bond Market Association. The BMA surveyed 20 leading book runners of European bonds to...

Ratings Movers: Warner Up A Beat , Gatehouse Media Falls On Default.
November 6, 2006... Warner Music Group Corp. (WMG) saw its ratings rise last week when Standard & Poor's upgraded its $1.2 billion term loan and $250 million revolver to a BB- from a B+. Despite industry challenges, including piracy, a decline in CD sales and...

Market Predicts Le-Nature's Is All Washed Up.(Le Nature's Beverages - bankruptcy)
November 13, 2006... On the heels of criminal allegations and a forced bankruptcy for bottled drink provider Le-Nature's, market pundits fear the worst as they gear up for liquidation. If Le-Nature's is dissolved, the company - which owes more than $428 million to...

In Europe Few Flex Up To Get Done.
November 13, 2006... It may be only a drop in the ocean of an otherwise high-octane market, but the few European loan deals that have had a tougher time getting through this year, and have been flexed upwards rather than down, have not gone by unnoticed. ...

A New Order In Leveraged Finance: Part Two.
November 13, 2006... Second of a two-part series The need to be ambidextrous, not just on a bank loan desk but also in high yield bond financing, is necessary because the nature of deals can alter overnight, depending on market conditions and signals received...

Wachovia Serves Up Logan's Roadhouse Deal.
November 13, 2006... Wachovia is in the market with a $30 million revolver and $138 million term loan B for Logan's Roadhouse. Proceeds from the facility, along with senior subordinated notes and contributed equity, will fund Logan's acquisition by private equity...

CS To Fund CB Richard Ellis Acquisition.
November 13, 2006... Credit Suisse is gearing up to launch a $2.2 billion term loan for CB Richard Ellis Services (CBRE) on Wednesday. Proceeds from the facility will fund the acquisition of Trammell Crow Co. CBRE is also looking to amend or refinance its existing...

Wachovia Launches Cavalier Refi And Acquisition.(TalkAmerica Holdings)(Brief article)
November 13, 2006... Wachovia is in the market with a $20 million revolver and $415 million term loan for CavTel Holdings, LLC. Proceeds from the new facility will be used to fund the acquisition of TalkAmerica Holdings by Cavalier Telephone and TV, and to...

Bank Duo Shops Forest Recap.
November 13, 2006... Lead arrangers Credit Suisse and JPMorgan teamed up to a launch a $225 million term loan B and $150 million second lien term loan for Forest Alaska. The credit facility, which launched Thursday, will be used to finance a dividend...

CRC Tacks On Term Loan Debt.(educational programs)(Brief article)
November 13, 2006... CRC Health Corp. is adding a proposed $190 million term loan to its $345 million credit facility arranged by Citigroup. The new debt, which is currently being syndicated , will be used to fund the acquisition of Aspen Education Group and its...

RBS Promotes Salter For Loan Head.(Royal Bank of Scotland)(appointment of Lois Salter to the head of financial institutions )(Brief article)
November 13, 2006... The Royal Bank of Scotland global banking & markets recently announced the appointment of Lois Salter to head of financial institutions loan markets. In her new poisition, Salter will responsible for managing loan origitation efforts for...

Bear Forms Euro Capital Market Group.(Bear Stearns International Ltd)(Brief article)
November 13, 2006... Bear Stearns International Ltd, a wholly owned subsidiary of The Bear Stearns Companies, announced last week the formation of a new European capital markets group, responsible for the origination of both debt and equity transactions in the...

Morgan Stanley Teams Up With Avenue Capital.(Avenue Capital Group)(Brief article)
November 13, 2006... Morgan Stanley Investment Management (MSIM) has teamed up with Avenue Capital Group, a New York-based investment manager with approximately $12 billion in assets under management. Morgan Stanley said that it would acquire a minority interest in...

Z Capital Partners To Invest In Junk Debt.(Brief article)
November 13, 2006... Last week, James Zenni announced the formation of Z Capital Partners, LLC, a privately held alternative asset management firm based in Lake Forest, Ill. The new firm is establishing a hedge fund -with Zenni's personal capital - that will focus...

Fitch Publishes Principles For LBO Ratings.
November 13, 2006... Based on the current surge of leveraged buyouts (LBO), last week Fitch Ratings published a more detailed explanation of its ratings process for these types of transactions. Taking into account the growth of the credit derivatives market, which...

Moody's Sums Up LGD Results.(loss-given-default )(Brief article)
November 13, 2006... Moody's recently applied its new loss-given-default (LGD) methodology to more than 1,000 U.S. and Canadian-based speculative-grade companies with more than 3,000 rated debt instruments across 40 different industrial sectors. Ratings on the...

The Risky Role Of Alternative Lenders In The Leveraged Loan Market.( refinancing environment )
November 13, 2006... By Anthony DiSimone, Managing Director, and Jason Perri, Investment Professional, of Bayside Capital Looking to put money to work in a crowded marketplace, hedge funds, bulge bracket investment banks, CLO/CDO funds and private equity firms...

FSA: More Leverage In Euro PE Could Lead To Weakness/Abuse.(Financial Services Authority)(Private equity)
November 13, 2006... Leveraged financing is fuelling a significant expansion of the European private equity market. But the increasing level of debt used to finance private equity deals could leave transactions exposed to certain weaknesses in the event of a...

Ratings Movers: Qwest Rises From Junk, Chiquita Brands Bruised.
November 13, 2006... Qwest Communications International saw its ratings step into investment grade territory last week, when Fitch Ratings upgraded its $850 million revolver to a BBB- from a BB+. At the same time, the rating agency also upgraded its subsidiary...

Eddie Bauer Acquisition To Outfit New Debt.
November 20, 2006... Last week's acquisition announcement for Eddie Bauer Holdings has the market buzzing with the expectation of new debt to fund its $614 million price tag. Though the company has yet to release a plan for a capital structure, a spokeswoman for...

Goldman Bulks Up Leveraged Finance Team.(The Goldman Sachs Group Inc.)
November 20, 2006... Goldman Sachs has been beefing up both its leveraged loan and high yield teams with a flurry of new hires this year. Seven in total have been added in order to lay the foundation for an increasingly comprehensive and competitive leveraged...

ISDA Seeks Experts Sans Bias.(International Swaps and Derivatives Association)
November 20, 2006... The International Swaps and Derivatives Association (ISDA) is still looking for a council of experts that could help mitigate disagreements between credit default swap counterparties about what constitutes a deliverable obligation. While...

Buyout Group Snatches Up Clear Channel For $26.7 Billion.
November 20, 2006... AT PRESS TIME - Clear Channel Communications had entered into a merger agreement with a private equity consortium led by Thomas H. Lee Partners, L.P. and Bain Capital Partners, LLC. The group will acquire Clear Channel in a transaction valued...

BofA And JPMorgan Truckin' With OshKosh Acquisition.
November 20, 2006... Bank of America and JPMorgan are in the market with a $3.5 billion credit facility for OshKosh Truck Corp. The new debt package consists of a $500 million revolver, $400 million term loan A and $2.6 billion term loan B. Proceeds from the...

Bank Duo Kicks Off Term Loan For GM.(General Motors Corp.)(Brief article)
November 20, 2006... JPMorgan and Credit Suisse are in the market with a seven-year $1.5 billion term loan for General Motors Corp. (GM) Proceeds will be used to enhance GM's liquidity position and take advantage of robust market conditions, according to the...

Bank Consortium To Launch Kinder Morgan.(credit facility launched)(Brief article)
November 20, 2006... Goldman Sachs, Citigroup, Deutsche Bank and Merrill Lynch are gearing up to launch an $8.6 billion credit facility for Kinder Morgan. The deal includes a $5.6 billion term loan B with a $1.5 billion delayed draw component, a $1 billion revolver...

Deutsche Launches Reliant Refinancing.(launched a credit facility)(Deutsche Bank AG)(Reliant Energy Inc.)(Brief article)
November 20, 2006... Deutsche Bank launched a $1.4 billion credit facility for Reliant Energy, last Monday. The debt package, which consists of a $700 million revolver, a $400 million term loan and a $300 million prefunded letter of credit, will be used to...

GS And JPM In The Market With John Maneely Acquisition.
November 20, 2006... Lead arrangers Goldman Sachs and JPMorgan are syndicating a new debt package, consisting of a $450 million asset backed revolver and a $1.275 billion term loan, for John Maneely Co. (JMC). Drawings of approximately $261 million under the...

CapitalSource Expands Cross Border.(Canada)(Brief article)
November 20, 2006... CapitalSource, a middle market lending company, has recently expanded its business into Canada, forming a subsidiary to provide financing for Canadian-based middlemarket companies. The new extension will originate cash flow and asset-based...

How Low Can They Go? Default Rates Continue To Drop.(Brief article)
November 20, 2006... Default rates in the U.S. leveraged loan market continued to decline last month from 1.18% to 0.99%, according to S&P. This is the lowest level that S&P Leveraged Commentary and Data (LCD) has reported since August 2004. To be sure, given...

Ratings Movers: Complete Up On Scale, Lenox Group Doesn't Sell.
November 20, 2006... Complete Production Services's ratings rose last week when Moody's Investors Service upgraded the company's $350 million revolver to a Ba1 from a B2. The upgrade reflects the proposed addition of $600 million of senior unsecured notes to the...

Blackstone To Flood Debt Market With King-Size LBO.(The Blackstone Group's acquisition of Equity Office Properties Trust bieng financed by Goldman Sachs; Bank of America; Bear Stearns)
November 27, 2006... Just when the market thought nothing could top the $33 billion buyout of HCA announced earlier this year, make way for the $36 billion buyout of Equity Office Properties Trust by The Blackstone Group, and the colossal amount of debt expected to...

Rise In Second Liens Prompts Evaluations.
November 27, 2006... In the current rush for yield, second lien debt has seen many an investor flock to its lucrative territory. And with the current swell of issuance, ratings agencies have heard the market question just where this second priority debt fits into...

AlixPartners Follows Burgeoning Debt To India.
November 27, 2006... The World Economic Forum's annual India Economic Summit takes place in New Delhi this week and, according to market talk, it promises to be one of the most highly attended international events this year. More than a decade has passed since...

JPM And Merrill To Arrange Freeport's Acquisition.
November 27, 2006... AT PRESS TIME -- JPMorgan and Merrill Lynch are gearing up to launch a debt package for the Freeport-McMoRan acquisition of Phelps Dodge. The transaction for $25.9 billion in cash and stock, will create the world's largest publicly traded...

Wachovia In The Market With Apptis Refinancing.(Wachovia Corp.)
November 27, 2006... Wachovia is shopping a $180 million credit facility for Apptis. The new debt package consists of a $30 million revolver and a $150 million term loan B. Proceeds from the facility will be used to return capital to its financial sponsor New...

GE Fuels Up For JHT Refinancing.(GE Capital )(JHT Holdings )(Brief article)
November 27, 2006... GE Capital launched a $130 million credit facility for JHT Holdings Tuesday. The new debt package consists of a five-year $20 million revolver and a six-year $110 million term loan. Proceeds from the facility will be used to refinance debt...

JPM And Citi To Fund Add On Term Loans For Visteon.(JPMorgan)(Brief article)
November 27, 2006... Visteon Corp. is adding on $100 million to $200 million in secured term loans to its existing seven-year $800 million secured term loan, which expires in June 2013. JPMorgan and Citigroup are lead arrangers on the transaction. Proceeds from the...

Wells Fargo Launches Wavedivision Debt.(banking services)(Brief article)
November 27, 2006... Wells Fargo is in the market with a $350 million debt package for Wavedivison Holdings. The new credit facility consists of a $50 million revolver, a $100 million term loan A and a $200 million term loan B. Proceeds from the facility will be...

GE Appoints McGonigle For Corporate Lending.(appointment of Michael P. McGonigle as managing director )(Brief article)
November 27, 2006... GE Commercial Finance recently announced the appointment of Michael P. McGonigle as managing director of trade accounts receivable securitization within its corporate lending business. McGonigle's responsibilities include providing financing of...

Orchard Taps Quon For Middle Market Lending.(Orchard First Source Capital)(appointment of David C. Quon as managing director )(Brief article)
November 27, 2006... Orchard First Source Capital (OFS) has announced the appointment of David C. Quon as managing director and credit committee member. In this newly created position, Quon will be responsible for leading and expanding the direct middle market...

Middle Market Lending In The Media Sector.
November 27, 2006... By Andre Paquette, Director, NewStar Financial One might rely upon the adage, "The more things change, the more they remain the same," to describe financing transactions in the media space. As the pace at which individuals and...

Ratings Movers: Denny's Debt Smokin', LifeCare Outlook Bleak.
November 27, 2006... Denny's Corp. was hot last week, as Standard & Poor's upgraded its $75 million revolver and $225 million term loan to a B+ from a B. S&P also raised the company's $120 million second lien term loan to a B- from a CCC+. The upgrade reflects...