Bank Loan Report articles from October 2004

Bank Loan Report archives from October 2004

Corporate Financing Thrives Amid Modest Rate Hikes.
October 4, 2004... When the year began, Univest Corp., a Souderton, Pa.-based financial services company, was preparing for the good times to end. For the past two years, near-record low interest rates had been a happy fact of life for Univest, as for most...

High Yield Back En Vogue As CDO Collateral.(Collateralized debt obligations)
October 4, 2004... Granted spread tightening has been a factor across numerous asset-backed markets, but none have responded with the panache that the collateralized debt obligation (CDO) market has. Three innovations have grown in popularity this year, including...

Prelim Guidelines Set For Participations.
October 4, 2004... It's still official. The Financial Accounting Standards Board (FASB) decided at a recent meeting to continue to allow participations to receive sales accounting treatment under FASB Statement No. 140 (FAS 140), as long as the transfer...

Headwaters' Second Lien Trumps First Lien.
October 4, 2004... Investors quickly oversubscribed to the $150 million second lien loan for B1-rated Headwaters last month, which was more than can be said for its seven-year, $640 million first lien term loan - also a part of the company's $865 million credit....

BofA, Key Bank Shop AIMCO Refi.(Bank of America)(Apartment Investment and Management Company)(Brief Article)
October 4, 2004... Bank of America and Key Bank hit the market last Tuesday with a $700 million credit facility for real estate investment trust (REIT), Apartment Investment and Management Company (AIMCO). The deal is broken down between a $250 million term loan...

General Growth Properties To Launch Mega-Financing Package.
October 4, 2004... Also in the REIT space, General Growth Properties is scheduled to hit the market today with a massive $9.75 billion acquisition financing facility to support its $12.6 billion purchase of The Rouse Company. BofA, Lehman, Credit Suisse First...

Boise Cascade Spinoff Credit Hits Market.(Brief Article)
October 4, 2004... JP Morgan and Lehman launched syndication last Wednesday of Madison Dearborn Partners' $2.905 billion credit to support its acquisition of the paper, forest products and timberland assets of Boise Cascade Corp. for $3.7 billion. The credit...

CIBC, Antares Lead Vitaquest.(CIBC World Markets)(Antares Capital Corp.)(Brief Article)
October 4, 2004... CIBC World Markets and Antares Capital Corp. are leading a $105 million credit facility for Vitaquest International, the parent company of Garden State Nutritionals, Windmill Health Products and Celmark International. The deal is broken down...

Goldman Assembles Furniture Co Facility.(Brief Article)
October 4, 2004... Goldman launched syndication last Wednesday of a $215 million credit facility for furniture maker Berkline/ BenchCraft Holdings. The credit includes a $35 million revolver, a $110 million first lien term loan and a $70 million second lien term...

JPM's Head Of Euro Loan Trading Heads To NY.(J.P. Morgan Chase and Co.)(Brief Article)
October 4, 2004... Stan Sokolowski, head of loan trading for JP Morgan in London, is said to be crossing the Atlantic this month in order to take a new position in New York within the investor client management unit. As part of the team, Sokolowski will support...

Deutsche Bank Bolsters Energy Group.(Deutsche Bank AG (Frankfurt, Germany))(Brief Article)
October 4, 2004... Deutsche Bank announced the appointment of Tod Benton last week as a managing director in the energy, utilities and chemicals investment banking group, however, he technically began in the new role in July. In his new position, Benton will be...

Johnson, Khlat Join List Of New BNP Paribas Staffers.(Michael Johnson)(Youssef Khlat )(Brief Article)
October 4, 2004... BNP Paribas' London office announced two new appointments last week intended to boost the bank's leveraged and high yield businesses. Michael Johnson has been appointed as co-head of leveraged finance UK, while Youssef Khlat has been appointed...

Vive Le Junk: SG CIB Sets Sights On European High Yield.(SG Corporate and Investment Bank)
October 4, 2004... Three years after firing its three-member high yield bond team in London as part of a reorganization of its corporate bond businesses, SG CIB, the corporate and investment banking arm of the Societe Generale Group, is planning to expand its...

Private Equity Firms Leveraging Up The Chemical Sector.
October 4, 2004... The chemical industry boasts the reputation of being one of the most cyclical sectors in the US, and even now, when most experts say it is on an upward trend, there are some who say its recovery could be short-lived if the US economy slows down...

Top Lead Arrangers Maintain Rankings Through Third Quarter.
October 11, 2004... A quick glance at Thomson's syndicated loan league tables through the third quarter 2004 might lead you to think that you were looking at the tables for the previous quarter. That's because arrangers JP Morgan, Banc of America Securities,...

Westwood Carves Niches In Finance.
October 11, 2004... In just under a decade since its inception, New York-based investment banking boutique Westwood Capital has managed to not only focus its business on traditional M&A and corporate finance transaction services, but also on more specialized...

Investors Find No Relief In Secondary Mart.
October 11, 2004... Prices of assets in the secondary market for syndicated loans are as high as high can be, and institutional investors - prime rate funds and collateralized loan obligations (CLOs) are not happy, particularly as the forward new issue calendar...

Jefferies Babson Finance Forms To Offer Middle Market Loans.
October 11, 2004... Jefferies Group and Babson Capital Management announced the launch of a new joint venture last week - called Jefferies Babson Finance. The new business will offer loans to middle market and growth companies with sales in the neighborhood of...

PNC Hires Two New ABL Bankers.(PNC Business Credit)(asset-based lending)(Brief Article)
October 11, 2004... PNC Business Credit announced the appointment of two new bankers to its Chicago office asset-based lending (ABL) team last week. Both Thomas Thompson and Alan De Guzman will now support PNC's efforts to expand its ABL business in the Midwest by...

Deutsche Bank Presents New Kerasotes Dividend Credit.(Brief Article)
October 11, 2004... Deutsche Bank is in the market with a $300 million financing for Kerasotes ShowPlace Theatres, a motion picture theater company with locations in the Midwest and upper Midwest US. The credit includes a six-year, $100 million revolver and a...

PM, Wachovia To Lead Roper Acquisition Facility.(J.P. Morgan Chase and Co., Wachovia Securities Inc., Roper Industries Inc.)(Brief Article)
October 11, 2004... JP Morgan and Wachovia Securities have been selected to lead the $1 billion financing that will, in part, back Roper Industries' acquisition of TransCore Holdings for $600 million from an investor group led by KRG Capital Partners. Exact...

UBS Shops Garage Door Co. Buyout Deal.(Brief Article)
October 11, 2004... UBS launched syndication last Tuesday of a $145 million credit facility to back JLL Partners' acquisition of CHI Overhead Doors. The credit comprises a $20 million revolver, a $95 million first lien term loan and a $30 million second lien term...

CDO Growth Story Continues To Unfold.(Collateralized Debt Obligation Conference)
October 11, 2004... The second annual Collateralized Debt Obligation (CDO) Conference sponsored by The Bond Market Association served as the unofficial kickoff to conference season for the securitization markets. The day's platform documented growth in product...

Due Diligence Firm Grows As Investors Seek Returns.
October 11, 2004... As investors turn to riskier ventures to grow their capital, many in search of greater returns are putting their money into hedge funds, the burgeoning industry that might as well be considered mainstream now. And as the loosely regulated hedge...

More Middle Market CDOs Adopt Pro Rata Pay Structure.(collateralized debt obligations)
October 18, 2004... The pro rata pay structure - which allows for the payment of interest and principal to be distributed across each tranche of the capital structure, rather than sequentially in order of seniority - has been popping up in more middle market...

CUSIPs Now Available For Loan Mart.
October 18, 2004... The Web-based program called the Syndicated Loan Service, which lists CUSIP, CUSIP-based ISIN numbers and core descriptive data for syndicated loan deals is now available for use by loan market participants after nearly a five-year,...

Quest Advisors - Agents Of Change.
October 18, 2004... Rather like a crack squad of crises managers, the team of highly skilled, experienced professionals at Quest Turnaround Advisors is trained to move into under-performing and financially troubled companies, assess the severity of the situation...

Citigroup Sells Drive-by Amkor Term Loan Off Bond Desk.(Brief Article)
October 18, 2004... Amkor Technology hit the market with a surprise, six-year, $300 million term loan last Wednesday via leads Citigroup, JP Morgan and Merrill Lynch, according to a source who said it was being sold off of Citigroup's bond desk. "The bond guys...

BNP Paribas Shops Tinnerman Palnut Buyout Line.(Brief Article)
October 18, 2004... BNP Paribas is leading a $150 million credit for Ares Management in support of the private equity firm's acquisition of Tinnerman Palnut Engineered Products. The credit comprises a six-year, $85 million first lien term loan, a six-year, $25...

BofA To Bring TRM Facility To Market.(Brief Article)
October 18, 2004... Banc of America Securities is set to syndicate a $150 million credit facility for automated teller machine (ATM) company TRM Corp. this week, according to an investor. The credit will comprise a $15 million revolver, a $15 million revolver,...

Merrill Preps Choctaw Casino Deal.(Mississippi Band of Choctaw Indians)(Brief Article)
October 18, 2004... Merrill Lynch is heard to be prepping a credit facility for the federally recognized Indian tribe - the Mississippi Band of Choctaw Indians - that will be launched for syndication in the near future. An investor said proceeds from the deal will...

UBS Pitches USA Mobility.
October 18, 2004... UBS is leading the credit to support the merger of Arch Wireless and Metrocall Holdings. The credit includes a $140 million term loan priced at Libor plus 250 bps, according to an investor. Upon close of the merger, the merged entity will...

Doane Pet Care Refinancing Emerges.(Brief Article)
October 18, 2004... Credit Suisse First Boston launched syndication last week of a $230 million refinancing credit for the Doane Pet Care Company. The new deal includes a $195 million term loan B and a $35 million revolver, with price talk in the Libor plus 450...

Moody's Remains At 2.3%.(Moody's Investor Service, default rate)(Brief Article)
October 18, 2004... Meanwhile, Moody's Investors Service reported that the global speculative-grade default rate remained unchanged from the previous month in September, at 2.3%. It marks the first month since October 2003 that the default rate has not fallen....

S&P's Global Speculative-Grade Default Rate Drops To 1.64%...(Standard & Poor's Corp.)(Brief Article)
October 18, 2004... The global corporate speculative-grade bond default rate fell to 1.64% at the end of September 2004 from 1.69% in August, according to S&P. This marks the 11th consecutive month where the default rate has remained below the long-term...

What You Should Know about Appraisal Values In A Changing World Economy.
October 18, 2004... By Robert Maroney, Senior Vice President, Chief Appraisal Officer, Bank Of America Business Capital Accurate appraisals are the very foundation of asset-based loans. Companies count on them to ensure that their borrowing power is...

Surge In Restructuring? Be Patient, It's On Its Way...
October 25, 2004... Restructuring firms have been quite starved for deals over the past two years, with default rates sinking to lows of near 1%, and companies accessing the capital markets, rather than looking toward turnaround firms, to improve their balance...

Macro Issues, Hedge Funds To Spur Distress.
October 25, 2004... Distressed investors have been on the sidelines for much of the past two years, but if oil prices continue to rise and new paper remains in short supply, they may be back in business sooner rather than later. To be sure, the macroeconomic...

Moody's Reveals Issuers Declining Ratings.(Moody's Investors Service)
October 25, 2004... In a move that increases transparency and makes known to all the nature of Moody's Investors Service's relationship with certain issuers, the ratings service has announced that it will, from here on out, disclose the names of all issuers who...

Fitch Launches Nth-to-Default Model,Offshoot Of VECTOR Model.(Fitch Ratings)
October 25, 2004... Fitch Ratings announced its launch of an Nth-to-Default Model last week that will now be available for those seeking a tool to evaluate risks related to Nth-to-Default trades. Nth-to-Default trades are synthetic transactions where a credit...

Wachovia Shops CONTECH's Dividend Recap.(Brief Article)
October 25, 2004... Wachovia Securities launched syndication of a $350 million dividend recapitalization deal last Tuesday for CONTECH Construction Products. The credit includes a $125 million, five-year revolver priced at Libor plus 250 basis points (bps) and a...

Deutsche Bank Serves Up Nash Finch Refi.(Brief Article)
October 25, 2004... Deutsche Bank launched syndication last week of a $300 million credit facility for the Nash Finch Company, a food distribution company. The refinancing credit, which comprises a $200 million term loan and a $100 million revolver, will go toward...

NorthWestern Emerges With Exit Deal To Pay Down DIP, CSFB Loan.
October 25, 2004... Electricity provider NorthWestern Corp. is tapping the market via Lehman Brothers and Deutsche Bank for a new $250 million credit facility as the company nears a scheduled emergence from bankruptcy on Nov. 1. The new credit includes a $125...

BNP Paribas Closes Third Leveraged Loans CLO In Europe.(collateralized loan obligation)(Brief Article)
October 25, 2004... In yet another move that adds to the growing amount of institutional debt flowing into the European loan market these days, BNP Paribas announced last Wednesday that it has closed a 306.5 million managed collateralized loan obligation (CLO)...

Progress Made In Corporate Governance But Ways To Go.
October 25, 2004... The in-depth assessment of corporate governance at major US companies undertaken by credit rating agencies a little over a year ago has shown that there has been a significant improvement in this area since the post-Enron era. According to...