High Yield Report articles from April 2009

High Yield Report archives from April 2009

Sbarro Amends Facility, Nets Second-Lien TL.(News)
April 6, 2009... Byline: Richard Kellerhals Melville, N.Y.-based pizza chain Sbarro has amended its $183 million first-lien term loan, revising the loan's financial covenants and adding a new $25 million second-lien term loan to the facility. It...

Obama Gets Thumbs Up From GM Bondholders.(News)
April 6, 2009... Byline: Richard Kellerhals General Motors bondholders have their thumbs up in support of President Obama's decision to assert more government control over the beleaguered auto maker, according to Bloomberg. They view the Obama...

Citi Lev Finance Vets Join Former Colleagues.(News)
April 6, 2009... Byline: Carol J. Clouse North Sea Advisors, a leveraged finance advisory firm recently founded by Citibank loan veterans Mickey Brennan and Jon Calder, has added four leveraged finance professionals, including a couple of former Citi...

BWAY To Sell $200M In New Bonds.(News)
April 6, 2009... Byline: Matthew Sheahan Industrial container manufacturer BWAY plans to issue $200 million in senior subordinated notes due 2014 in a private placement. The Atlanta-based company plans to use the proceeds to redeem $200 million in 10%...

NXP Completes Debt Exchange.(News)
April 6, 2009... Byline: Richard Kellerhals After an initially disappointing response to a bond tender offer, Dutch semiconductor maker NXP completed the exchange, getting even more takers than it had hoped for. The bonds exchanged consist of $255...

Georgia Gulf Makes Exchange Offer.(News)
April 6, 2009... Byline: Matthew Sheahan Chemical producer Georgia Gulf hopes it has found the formula that will turn $800 million in senior unsecured and subordinated notes into $250 million in second-lien notes. The Atlanta-based company announced an...

CreditSights: Bad Bond Exchanges, Bad.(News)
April 6, 2009... Byline: Richard Kellerhals Research firm CreditSights has published a report citing the negative effect today's debt exchanges have on bondholders. Bond exchanges historically were utilized to extend pending maturities for...

Charter Sued By Agent Bank.(News)
April 6, 2009... Byline: Richard Kellerhals Recently, some bankrupt companies have been spending a lot of time in court battling creditors, and even, in one instance, private equity owners. Now, Charter Communications, a St. Louis-based cable television...

Waivers Dominate Europe In Q1, Same Expected For Q2.(News)
April 6, 2009... Byline: Savita Iyer-Ahrestani Senior debt club deals do not a true leveraged loan market make. But in the first quarter of 2009, a sprinkling of these deals-like a a[logical not]275 million loan underwritten by BNP Paribas, Intesa Sanpolo...

Lazard Nabs ABN Amro Lev Finance Co-Head.(News)
April 6, 2009... Byline: Richard Kellerhals Lazard has snagged ABN Amro's co-head of leveraged finance to run its debt advisory business in the Benelux region-a region of Europe made up of Belgium, the Netherlands and Luxemburg. Erwin de Jong will be...

General Growth: No Deal With Bondholders.(News)
April 6, 2009... Byline: Matthew Sheahan Shopping mall owner General Growth Properties has failed to get enough bondholders to agree to extend the payment deadline on $2.25 billion in unsecured notes of subsidiary The Rouse Corp. General Growth is trying...

BWAY, Plains E&P Issue HY Bonds.(News)
April 6, 2009... Byline: Matthew Sheahan Two companies hit the high yield primary market Wednesday to price more than $400 million in high yield bonds. BWAY Corp. and Plains Exploration & Production Co. each netted $200 million. Plains E&P pulled off a...

More Liquidations To Hit CLO Market?(News)
April 6, 2009... Byline: Richard Kellerhals The CLO market has had dark clouds overhead since the credit storm began, and occasionally there have been downpours of liquidations and forced selling. As the storm lingers, market participants differ on their...

Some Covenants Don't Go Changing.(News)
April 6, 2009... Byline: Matthew Sheahan Tougher times call for tougher covenants, or maybe not. An examination of covenants on new deals this year shows that issuers can get away with using the bubble-era covenant structures from a few years ago, if...

Miller Tabak Expands HY Team.(News)
April 6, 2009... Byline: Matthew Sheahan Miller Tabak Roberts Securities has hired seven sales people and a trader for its expanding high yield team. Firm CEO Robert Schoenthal said that more hires would be announced in the weeks to come. The firm also...

New Credit Agreement Handbook Gets Published.(News)
April 6, 2009... Byline: Richard Kellerhals Two years after publishing "The Handbook of Loan Syndications and Trading," a how-to book explaining the business of leveraged loans, McGraw Hill has published "The Loan Syndications and Trading Association's...

AES Corp. Looks To Price $350M.(News)
April 6, 2009... Byline: Matthew Sheahan Energy provider AES Corp. plans to issue $350 million in senior unsecured notes due 2016 in a private placement, the company said today. The company plans to use the notes for general corporate purposes,...

Lyondell Tries To Kill Collection Efforts.(News)
April 6, 2009... Byline: Richard Kellerhals Dutch chemical maker LyondellBasell this weekend filed court papers to stop ConocoPhillips and other lenders in their attempts to collect on Lyondell's debt. Earlier this month, the lenders sought once again...

Conseco Amends Credit Facility.(News)
April 6, 2009... Byline: Matthew Sheahan Insurance company Conseco helped fortify its credit position with an amended facility, the company announced today. The Carmel, Ind.-based company said it increased its debt capital ratio requirement and decreased...

Cinram Nets Amendment From Lenders.(News)
April 6, 2009... Byline: Richard Kellerhals Cinram International, a Canadian digital disc maker, has received the go-ahead from its lenders to amend its credit facility. The company had been looking to buy back some of its debt and, on March 20,...

Navistar To Buy Monaco Assets.(News)
April 6, 2009... Byline: Avram Davis Navistar International Corp., based in Warrenville, Illinois, has tentatively agreed to acquire the assets of recreation vehicle maker Monaco Coach Corporation. While terms of the transaction were not disclosed,...

AES Prices $535M In New Bonds.(News)
April 6, 2009... Byline: Matthew Sheahan Energy provider AES Corp. on Monday issued $535 million in 9.75% senior notes due 2016 in a private placement, up from the $350 million it initially intended to place, according to the company. The notes priced with...

Six Companies Amend Credit Facilities.(News)
April 13, 2009... Byline: Richard Kellerhals Six companies-Marlin Business Services, Lifetime Brands, Scientific Games, Gray Television, Layne Christensen and Bowne & Co.-have amended their credit facilities in the last couple of days. These six amendments...

Stimulus Shines Spotlight On Infrastructure PE.(News)
April 13, 2009... Byline: Avram Davis, MAJ In October 2008, Doug Dossey and Matthew Katz of FdG Associates were considering the acquisition of Pittsburgh heavy construction and demolition contractor Joseph B. Fay Co. Dossey knew that the company was an...

Broadpoint Taps Deutsche's Zucker.(News)
April 13, 2009... Byline: Matthew Sheahan Broadpoint Capital added Brian Zucker as a managing director in its debt capital markets division, the company announced today. The move is part of the New York-based firm's larger expansion of its debt capital...

Seagate, Hertz Amend Facilities.(News)
April 13, 2009... Byline: Richard Kellerhals Seagate Technology and Hertz have amended their credit facilities. Seagate, a Scotts Valley, Calif.-based technology company that makes hard-disk drives, received approval from its lenders to reduce its...

Big-Name Bankers Go Back To School, Sort Of.(News)
April 13, 2009... Byline: Joshua Hamerman, IDD Forget Rodney Dangerfield. Lately, it's investment bankers who are going back to school. On Monday, Peter Taylor, most recently the head of West Coast public finance at Barclays Capital, started his new...

Charter Seeks To Derail JPMorgan's Lawsuit.(News)
April 13, 2009... Byline: Richard Kellerhals Charter Communications, a St. Louis-based cable television system provider, plans to file a motion in a Manhattan court, seeking to derail a lawsuit brought by its agent bank, JPMorgan. JPMorgan's lawsuit...

Ventas Prices $200M; Qwest On Deck.(News)
April 13, 2009... Byline: Matthew Sheahan Ventas Realty, a subsidiary of Ventas Inc., today priced $200 million in 6.5% senior notes due 2016 to raise money for a bond tender offer. The bonds priced with an OID of 84.25 to yield $169 million for the...

Lyondell Creditors To Probe 2007 Merger.(News)
April 13, 2009... Byline: Richard Kellerhals LyondellBasell's committee of unsecured creditors has received the go ahead from a Manhattan judge to probe the 2007 merger between Lyondell and Basell. On March 10, the committee insisted that an...

Qwest Issues More Than $800M In Bonds.(News)
April 13, 2009... Byline: Matthew Sheahan Qwest issued $810.5 million in 8.375% senior notes due 2016 Tuesday. The size of the offering was a significant jump from the firm's initially announced $300 million effort. The notes priced with an OID of 92.50 to...

MGM Seeks Dough From PE Firm.(News)
April 13, 2009... Byline: Richard Kellerhals Casino operator MGM Mirage, which in the last 30 days has been hit with a lawsuit and has offered up its casinos as collateral to eliminate debt, is reportedly in talks with private equity firm Colony Capital...

Calpine Seeks Amendment To Buy Back Loan.(News)
April 13, 2009... Byline: Matthew Sheahan Houston-based power provider Calpine Corp. is looking to amend its credit agreement, so it can buy back its $7 billion exit loan. The company has been saddled with more than $10 billion in debt since emerging from...

Morris Publishing Gets Forbearance Extension.(News)
April 13, 2009... Byline: Matthew Sheahan Morris Publishing Group received an extension from creditors for a $9.7 million interest payment for its senior subordinated notes. The extension lasts until April 24; the interest payment was due Feb. 1. The...

Timing Refinancing May Lead To Disaster.(News)
April 13, 2009... Byline: Matthew Sheahan With the high yield bond and loan markets facing a wave of maturities in the coming years, the issue of refinancing is on the minds of CEOs. The going conventional wisdom right now is that things can always get...

Could You Pass The Salt? Investors May Taste Morton Debt.(News)
April 13, 2009... Byline: Richard Kellerhals In Roman times, salt was so precious it was used as cash. (Hence the word salary, sal being the Latin word for salt.) If that were still the case, Morton Salt probably wouldn't be selling itself to the Germans....

Market Considers Forward Start Facilities.(News)
April 13, 2009... Byline: RIchard Kellerhals Borrowers with debt maturities fast approaching may have a new card they can play. "Forward start" facilities, a type of credit facility that originated Europe, are crossing the Atlantic bound for the U.S....

BofA Names Head of Fixed Income Sales.(News)
April 13, 2009... Byline: Matthew Sheahan Bank of America announced a new head of Americas fixed income sales as part of its combined global markets team for Bank of America Merrill Lynch. The bank named Bryan Weadock as head of Americas fixed income sales....

Funds' Goal: Help Banks Fix Commercial Portfolio.(News)
April 13, 2009... Byline: Katie Kuehner-Hebert, American Banker In response to concerns that the recession could further damage businesses, some investors are seeking ways to help banks reduce their exposure to commercial loans. Private-equity firms...

Aventine Files For Chapter 11 Protection.(News)
April 13, 2009... Byline: Matthew Sheahan Aventine Renewable Energy Holdings filed for Chapter 11 bankruptcy protection, the company said yesterday. The Pekin, Ill.-based ethanol producer secured a $30 million DIP loan. The company said that bondholders...

Lamar, Proliance Amend Credit Facilities.(News)
April 13, 2009... Byline: Richard Kellerhals Lamar Media and Proliance International have amended their credit facilities. Lamar, a Baton Rouge, La.-based billboard operator, received approval from its lenders to relax the company's financial...

Univision, Kimco Seek Credit Facilities.(News)
April 13, 2009... Byline: Richard Kellerhals Univision Communications and Kimco Realty are trying to secure new credit facilities. Univision is seeking a $250 million credit facility that would be comprised of a term loan and revolver and is offering to...

S&P: Defaults Reach Largest Weekly Tally.(News)
April 13, 2009... Byline: Matthew Sheahan This week saw the largest weekly tally of corporate defaults for the year so far, according to a report issued today by Standard & Poor's. A total of 14 global corporate issuers defaulted this week, bringing the...

Banks Launch Roskam TL.(News)
April 13, 2009... Byline: Richard Kellerhals GE and CIT Group have launched a $115 million credit facility for Roskam Baking, a Grand Rapids, Mich.-based commercial baker and cereal maker. The facility consists of a $95 million term loan and a $20...

Level 3 Secures TL From BofA.(News)
April 13, 2009... Byline: Richard Kellerhals Level 3 Communications, a Broomfield, Colo.-based technology company has secured a $220 million term loan B from Bank of America. The term loan was syndicated to investors; books closed on April 3, according...

Simpson Thacher Expands Bankruptcy Team.(News)
April 13, 2009... Byline: Matthew Sheahan Law firm Simpson Thacher & Bartlett has expanded its bankruptcy practice, hiring Sandeep "Sandy" Qusba as a partner. He joined the firm's New York office. Qusba was most recently a partner with law firm White &...

BorgWarner Seeks Amendment, New Debt.(News)
April 13, 2009... Byline: Richard Kellerhals BorgWarner, an Auburn Hills, Mich.-based auto parts manufacturer, is looking to amend its $600 million revolver, expanding it by $220 million, and issue about $275 million in convertible senior notes due 2012....

Hearthside Secures Facility From GE.(News)
April 20, 2009... Byline: Richard Kellerhals Hearthside Food Solutions, a Grand Rapids, Mich.-based maker of packaged foods, has secured a $115 million credit facility from GE. The proceeds from the facility, which consists of a $95 million term loan A...

Three Companies To Tap HY Market.(News)
April 20, 2009... Byline: Matthew Sheahan Three companies hope to price a total of $1.2 billion in high yield bonds this week, bringing the total on the forward high yield calendar to $1.63 billion. HCA, DigitalGlobe and JBS USA are the latest companies...

DTCC, Markit Improve Reconciliations.(News)
April 20, 2009... Byline: Richard Kellerhals The Depository Trust and Clearing Corporation and Markit have begun working on a computer program to help buyside loan participants automate the syndicated loan reconciliation process. The program will...

Toll Brothers Prices $400M In New Bonds.(News)
April 20, 2009... Byline: Matthew Sheahan Luxury home builder Toll Brothers priced $400 million in high yield bonds in a drive-by today. The Horsham, Pa.-based company issued 8.9% senior notes due 2017, with an OID of 97.98 for a total yield of 9.25%. ...

HCA Prices $1.5B In High Yield Bonds.(News)
April 20, 2009... Byline: Matthew Sheahan Nashville, Tenn.-based hospital operator HCA today issued $1.5 billion in 8.5% senior secured notes due 2019, three times the amount initially planned. The bonds priced with an OID of 96.76. Citigroup was the...

Lenders Give Georgia Gulf Leeway On Payment.(News)
April 20, 2009... Byline: Matthew Sheahan Georgia Gulf struck a deal with its senior secured lenders that allows it to forgo making a $34 million interest payment due today on its 2014 senior notes and 2016 senior subordinated notes. The Atlanta-based...

ICE Secures $775M Facility From Banks.(News)
April 20, 2009... Byline: Richard Kellerhals IntercontinentalExchange, a New York-based operator of global futures exchanges, credit derivatives and various over-the-counter commodity markets, including agriculture and energy, has secured a $775 million...

Crown Castle To Issue $1.1B In Bonds.(News)
April 20, 2009... Byline: Matthew Sheahan Crown Castle International plans to price as much as $1.1 billion today on the high yield bond market, the company said. The Houston-based wireless tower company plans to issue senior secured notes due 2017. ...

NYMT Invests $9 Million In CLO.(News)
April 20, 2009... Byline: Richard Kellerhals New York Mortgage Trust, a real estate investment trust that securitizes prime residential mortgages, has invested $9 million in the Cratos CLO I, marking its first foray into alternative investments. The...

Movado Seeks $110M ABL.(News)
April 20, 2009... Byline: Richard Kellerhals Movado, a Paramus, N.J.-based watch maker, has begun looking to secure a $110 million asset-backed loan. The company plans to use the proceeds to replace an existing facility. Calls to Movado for more details...

Seagate To Issue $430M In HY Bonds.(News)
April 20, 2009... Byline: Matthew Sheahan Seagate Technology hopes high yield investors will step up and buy $430 million in senior secured second-priority notes due 2014, the company said today. The Scotts Valley, Calif.-based computer hard drive maker...

Abitibi, General Growth File For Chapter 11.(News)
April 20, 2009... Byline: Matthew Sheahan After failed attempts at restructuring their debt, newsprint company AbitibiBowater and shopping mall operator General Growth Properties have filed for bankruptcy. Both companies have obtained DIP financing and said...

R.H. Donnelley Misses $55M Payment.(News)
April 20, 2009... Byline: Matthew Sheahan Phone and business directory publisher R.H. Donnelley missed a $55 million interest payment due to creditors today. The company says it continues to work on a long-term debt restructuring effort. The Cary,...

Financial Crisis Brings Out Inner Entrepreneur.(News)
April 20, 2009... Byline: Carol J. Clouse Jon Calder wouldn't necessarily label himself a "born entrepreneur." "I worked at Citigroup for 25 years, so if the gene was in there, it was recessive," the well-known leveraged finance veteran quipped. ...

Market Sees Danger In Glut Of CCCs.(News)
April 20, 2009... Byline: Matthew Sheahan The abundance of companies in the CCC category is a general cause of concern for the high yield market, especially in a time of recession. While being a sign of tough times and presenting increased refinancing risk,...

Babson Nabs Former Wachovia VP.(News)
April 20, 2009... Byline: Richard Kelllerhals Babson Capital Management has hired Wachovia's former vice president of structured debt finance as a product manager in its global business development group. Loren Sageser, who acted as the head manager for...

Jones Apparel Gets OK To Change Covenants.(News)
April 20, 2009... Byline: Matthew Sheahan New York clothing supplier Jones Apparel received the required consent to change a covenant for three tranches of its bonds. The covenant change allows the company to proceed with a debt exchange it announced April...

Seagate Prices $410M In HY Bonds.(News)
April 20, 2009... Byline: Matthew Sheahan Seagate Technology priced $409.9 million in 10% senior secured notes due 2014 yesterday. The bonds priced with an OID of 95.32. The Scotts Valley, Calif.-based computer hard drive maker intends to use the...

Avenue Looks To Sell HY, Loan Unit.(News)
April 20, 2009... Byline: Richard Kellerhals Avenue Capital Group is looking to sell its division that oversees high yield bonds and leveraged loans within the next two months, according to a source familiar with the matter. The division oversees $2.8...

GM To Offer Bondholders Equity Exchange.(News)
April 20, 2009... Byline: Richard Kellerhals General Motors has begun prepping a formal offer to all bondholders to exchange approximately $27 billion in bonds for equity, according to Bloomberg. The troubled auto maker will announce the offer by April...

Bondholders Could Put Breaks On GM Plan.(News)
April 20, 2009... Byline: Richard Kellerhals General Motors has begun looking at ways to make a quick trip through bankruptcy, one it hopes will be as painless as possible. However, the company's bondholders don't see the current plan as painless for them,...

Maxim Expands Lev Finance Group.(News)
April 20, 2009... Byline: Matthew Sheahan Boutique investment bank Maxim Group has added two new managing directors and an analyst to its leveraged finance team, the firm announced today. The new appointments are part of an ongoing expansion. The New...

Colony Withdraws MGM Loan Offer.(News)
April 20, 2009... Byline: Richard Kellerhals Private equity firm Colony Capital today withdrew its offer to invest as much as $750 million in troubled casino MGM Mirage and walked away from the table. Colony began talking to MGM earlier this month about...

BMO Adds MD To Lev Finance.(News)
April 20, 2009... Byline: Matthew Sheahan BMO Capital Markets hired Eric Luftig as a managing director for its leverage finance group, the firm announced today. Luftig will oversee debt and equity private placements from the firm's New York office. ...

BMHC Approved To Borrow $20M More.(News)
April 20, 2009... Byline: Matthew Sheahan Building Materials Holding Corp. lenders approved the extension of a waiver that allows the company to borrow another $20 million through June 1, the company said today. The Boise, Idaho-based building material...

Huntsman Seeks Leverage Waiver.(News)
April 20, 2009... Byline: Richard Kellerhals Salt Lake City-based chemical company Huntsman is looking to amend its $2.3 billion credit facility, by waiving leverage limits on its $1.6 billion term loan, according to Bloomberg. The company has offered...

Dayton Superior Files for Chapter 11.(News)
April 27, 2009... Byline: Matthew Sheahan Dayton Superior plans to file for Chapter 11 bankruptcy protection, the Dayton, Ohio-based concrete and construction products provider said Sunday. The company has secured $165 million in debtor-in-possession...

DigitalGlobe Prices $355M In Bonds.(News)
April 27, 2009... Byline: Matthew Sheahan DigitalGlobe issued $355 million in 10.5% senior secure notes due 2014 on Tuesday. The Longmont, Colo.-based company will likely use the proceeds to refinance its existing senior credit facility and senior...

BofA Launches Michael Foods Deal.(News)
April 27, 2009... Byline: Richard Kellerhals Bank of America is shopping a $625 million credit facility for Michael Foods. The facility consists of a $275 million term loan B, a $275 million term loan A and a $75 million revolver. Price talk on the term...

GM Bondholders To Meet With Obama's Auto Task Force.(News)
April 27, 2009... Byline: Richard Kellerhals President Barack Obama's automotive task force has arranged to meet with General Motors' bondholders to discuss the company's restructuring. It couldn't be determined when the two sides will meet. GM has a...

Credit Suisse HY Veteran Joins Morgan Creek.(News)
April 27, 2009... Byline: Matthew Sheahan Former Credit Suisse Co-Head of High Yield Research Sam DeRosa-Farag has joined Morgan Creek Capital Management to help lead the expansion of its credit market initiatives, Morgan Creek said Tuesday. The move is...

ISDA Elects New Board Members, Releases Survey Results.(News)
April 27, 2009... Byline: Richard Kellerhals The International Swaps and Derivatives Association, which represents 820 member institutions from 57 countries in the derivatives business, has elected its new board members. Four new directors are Brian...

CPI, Cardinal Health Amend Facilities.(News)
April 27, 2009... Byline: Richard Kellerhals CPI, a St. Louis-based portrait photography company, and Cardinal Health, a Dublin, Ohio-based pharmaceutical distributor, have amended their credit facilities. CPI received an amendment from its senior...

General Motors May Skip $1B Bond Payment.(News)
April 27, 2009... Byline: Matthew Sheahan General Motors may skip a $1 billion bond interest payment June 1, according to comments made by Chief Financial Officer Ray Young. The company is working on a bond exchange, which it sees an essential element...

Encore Acquisition Issues $225M In HY.(News)
April 27, 2009... Byline: Matthew Sheahan Encore Acquisition Co. on Wednesday priced $225 million in 9.5% senior subordinated notes due 2016. The notes priced with an OID of 92.23% to yield 11.125% and net the company $207.5 million. The Fort Worth,...

FBR Launches Credit Trading, Debt Origination Unit.(News)
April 27, 2009... Byline: Richard Kellerhals FBR Capital Markets, an Arlington, Va.-based investment, broker and asset manager, is setting up a credit trading team and debt origination business, according to Bloomberg. The company is aiming to trade and...

Charter, Dayton Superior Face Reorg Trouble.(News)
April 27, 2009... Byline: Richard Kellerhals Charter Communications, a St. Louis-based cable television system provider, and Dayton Superior, a Dayton, Ohio-based metals company, have run into trouble trying to reorganize. In court papers filed earlier...