Bank Loan Report articles from October 2007

Bank Loan Report archives from October 2007

LBO Firms And Banks Consider Deal-Breaking MAC' Clauses.
October 1, 2007... A protective measure that sat in the background during the LBO bonanza and the ensuing debt investment spree has now come to the forefront as the soured credit markets have stalled the LBO machine. Leveraged buyouts do not have to proceed...

European Loans Could Seek High Yield Bond Help.
October 1, 2007... As in the U.S., investment banks in Europe are busy cooking up solutions to rid themselves of the estimated E80 billion leveraged loan overhang, which has led some to believe the high yield bond market might be worth turning to. "Unlike...

Spread Widening Forces CDO Liquidation.
October 1, 2007... As if the structured finance CDO market has not been dragged through the mud already, market-value CDOs appear to be the latest investment vehicle wounded by the lack of liquidity in the mortgage sector. With forced liquidations driving...

The Glass Is Half Full, Just Don't Spill The Milk.
October 1, 2007... You know the story. To escape from the island of Crete and angry King Minos, Daedalus built wings for himself and his son Icarus out of feathers and wax. Daedalus warned Icarus not to fly too close to the sun and melt his wings. But Icarus, in...

CIBC And GE Launch Deals; Former APS Traders Start Fund.
October 1, 2007... CIBC World Markets launched a $300 million credit facility for Southern Air at a general meeting last Wednesday. The debt consists of a $250 million first-lien term loan B and a $50 million revolver, according to a source close to the deal....

Correction:.(Correction notice)
October 1, 2007... In the Sept. 4 issue of Bank Loan Report, an article about new debt funds misstated the location of Audax Group. The firm is based in Boston and New York.

Lev Finance Bankers Could Find Home In Private Equity.
October 1, 2007... Wall Street's banking houses have enough trouble at the moment digesting the staggering debt loads of several multibillion-dollar buyouts, but the bulge-bracket banks face another less grave, though serious, threat in leveraged finance from the...

LNR Up On Less Leverage, Eddie Bauer Down On Weaker Sales.
October 1, 2007... Despite the turmoil in the real estate market, Standard & Poor's last week raised the ratings on Miami Beach, Fla.-based LNR Property Corp.'s $1.7 billion debt package to BB from B+. The change reflects LNR's success in reducing balance-sheet...

Q3: Mid-Market Steps Up, More Focus On Price And Structure.(middle market and banking industry)
October 8, 2007... While larger leveraged loan deals fizzled during the summer, the middle market is flourishing in the cool autumn breeze. And despite a dreary third quarter, U.S. leveraged loan volumes from Jan. 1 to Sept. 30 totaled $849.2 billion, up...

European Leveraged Finance Reinvents Itself For Q4.
October 8, 2007... Despite the extremely rough third quarter a moment in European leveraged finance history no one will soon forget market participants have embarked upon the final quarter of 2007 with optimism and a decent amount of good cheer. No one is...

Citi Tops CDO Rankings Despite Losses.
October 8, 2007... Citigroup Global Markets managed to claim the top position among U.S. ABS CDO managers, according to Thomson Financial, despite a recent announcement that the bank is facing losses on $1.3 billion in pretax subprime MBS collateral, CDO...

Back In Vogue: The Term Loan A?
October 8, 2007... While the large investment banks find themselves laden with leveraged loans they had intended to syndicate, one banking analyst predicts well see more of the originate-and-hold pattern. And not the forced variety. Punk, Ziegel & Co.s...

Investors Eye Bausch & Lomb, Smaller Deals Keep Luster.
October 8, 2007... Credit Suisse launched a $2.475 billion credit facility for Bausch & Lomb last week at bank meetings in New York and London. The reception was positive at both meetings, according to a source close to the deal. He said investors already have...

Bankruptcy Exit Money Gets Pricey.
October 8, 2007... Borrowing costs have gone up in all segments of the credit markets, so it should come as no surprise that getting an exit loan for a bankrupt business has gotten pricier and more challenging. Also, restructuring specialists believe that the...

Dean Foods Down On Earnings Revision; Revere Fails To Amend.
October 8, 2007... Standard & Poors last week downgraded Dean Foods $4.8 billion credit facility to BB from BB+ and its corporate credit rating to BB- from BB. The corporate credit downgrade follows the companys announcement that it has revised its earnings...

Investment Banks Rev Up Drive Into Private Equity.
October 15, 2007... When the well runs dry, as they say, the time has come to dig another. And investment banks, which have suffered significant losses in fixed income, seem to have found a source to tap: private equity. The banks' presence in private equity...

CDO Market Stalls, CLO Spreads Tighten.
October 15, 2007... Liability spreads in the ABS CDO market may continue to push out as issuance remains at a standstill. But with the pickup in new deals in the CLO sector, similar widening appears to have ended with the third quarter. While one CLO analyst...

Q&A: RBS Makes Push Into Euro Junk.
October 15, 2007... With deals like Formula One and Vivarte under its belt, Royal Bank of Scotland has been a clear leader in European leveraged lending this year. But even though the bank has enjoyed a great deal of success on the loan side of the business, it...

Metavante Launches $2 Billion, TXU Takes Center Stage.
October 15, 2007... JPMorgan last Tuesday launched a $2 billion credit facility for Metavante in New York City. The debt package consists of a $1.75 billion term loan B due 2014 and a $250 million revolver due 2013. Price talk was at Libor plus 175 bps, but the...

First Tranched LCDX Hits The Market.
October 15, 2007... Independent data and trade processing firm Markit launched the first tranched LCDX last Wednesday, with market players forecasting that a new crop of investors would take an interest in the product and create liquid trading conditions. "We...

Mosaic Up On Reduced Debt, Propex Down On Weak Cash Flow.
October 15, 2007... Moody's Investors Service has upgraded The Mosaic Company's $351 million credit facility to Baa2 from Ba1 and its corporate credit rating to Ba1 from Ba3. The ratings reflect Mosaic's strong cash flow and the reduction of its debt, which...

Rescue Fund Is Good News, But Will It Help Lev Finance?
October 22, 2007... In today's market, $80 billion may buy a lot of commercial paper, but it won't buy you peace of mind. The news that three major investment banks were putting together a fund to provide liquidity for the asset-backed commercial paper market may...

No Supply Deficit Seen For Loans.
October 22, 2007... While analysts at JPMorgan and Citigroup have recently reported that high yield bond investors may be forced to sit on piles of cash as a supply deficit takes hold, it appears the same cannot be said for the leveraged loan market, according to...

Investors Have Followed LCDX To Market.(Conference notes)
October 22, 2007... Whether by design or sheer coincidence, the introduction of independent data and trade processing firm Markit's LCDX index coincided with the loan market downturn. But cynicism aside, several market observers say its introduction has brought...

Bulls In The Spotlight, Bears On The Sidelines.
October 22, 2007... Traveling across the rolling plains of central Spain, or through the desert in the south, they appear over the horizon, and for a quick moment, you'll believe them to be real. Los Toros de Osborne - giant, black, bull-shaped billboards - stand...

Investors Spotlight UTAC; TXU Gets Warm Reception.
October 22, 2007... JPMorgan last Tuesday launched a $725 million credit facility for United Test & Assembly Center in New York, sources said. The debt package consists of a $625 million term loan and a $100 million revolver. Price talk was at Libor plus 312 bps....

Synth CDOs in Europe, More Downgrades Hit U.S. ABS CDOs.
October 22, 2007... New issuance in the U.S. CDO market remains dormant amid continued ratings instability. But the center of gravity seems to be moving east for CDOs as an increasing number of transactions are popping up overseas, particularly for synthetic...

HealthCare Up On Strong Core; CG&P Sees Weak Performance.
October 22, 2007... Standard & Poor's last week upgraded Torrance, Calif.-based HealthCare Partners' $279.5 million term loan B due 2013 and $15 million revolver due 2011 to BB+ from BB. The debt package also consists of a $135 million term loan due 2011 and a $10...

Harman Deal Brings Relief, Will Others Make Peace?
October 29, 2007... One LBO deal has cleared out of the pipeline without bloodshed. Harman International Industries reached an agreement with its would-be acquirers that has precluded a potentially protracted legal fight and cleared $5.19 billion out of the...

A New Road For U.S. Project Finance.(banking industry update)
October 29, 2007... Market observers see the U.S. importing the infrastructure finance strategies commonly used in Europe, Australia and South America faster than foreign TV shows. And investors are tuning in as they see infrastructure finance, or project finance,...

After Bonds, Investors Await Ceridian Loans.
October 29, 2007... Underwriters for Minneapolis-based human resources service provider Ceridian are taking the path less traveled by issuing $1.3 billion in bonds before issuing a bank loan. The bonds mature in eight years and were expected to price Friday....

Editor's Note: High Yield Parties Hard Again, Even PIK Toggles Welcome.
October 29, 2007... I've been preaching caution for a while now, so I hesitate to jump on the wild hog of overreaction, but the high yield bond primary market does seem to have picked itself up, brushed itself off and put on a brand new party dress. October...

Loan Market Buzz: Investors Eye Nuveen, Manor Care; Execs On The Move.
October 29, 2007... Commitments are due Tuesday on the Deutsche Bank-led $2.215 billion term loan B for Chicago-based investment manager Nuveen Investments, sources said. Deutsche Bank launched the deal two weeks ago. Price talk for the term loan B is at Libor...

BofA's Structured Products Business in Limbo.
October 29, 2007... Bank of America's steep 32% third-quarter profit drop has led to a shakeup in leadership and a reported plan for massive layoffs. Now it remains to be seen what becomes of the bank's structured products business, which is reeling from the...

Cohen Shops Latest ALESCO Trups Deal In Illiquid Market.
October 29, 2007... Cohen & Co. is in the market with a $408 million cash-flow trust preferred CDO, ALESCO Preferred Funding XVII. The deal will be the 22nd trust preferred transaction completed by Cohen & Company Financial Management and its affiliates, but it...

Rating Movers: CCS Up On Debt Stabilization, IAP Defaults On Covenants.
October 29, 2007... Moody's Investors Service last week upgraded Clearwater, Fla.-based CCS Medical's corporate family rating, to B3 from Caa1, as well as the ratings on two tranches in the company's credit facility - a $320 million first-priority term loan and a...