High Yield Report articles from August 2006

High Yield Report archives from August 2006

Primary MArket: Low Rated Deals Pay Price In Primary.
August 7, 2006... Though the high yield primary market remained open last week, investors continued to flex their muscles when it came to allowing new deals to clear the market. Although several lower quality deals managed to attract funding, it was not...

Market View: I-Grade Legacies Hurt HY Investors.(Toys "R" Us Inc.)
August 7, 2006... The recent declaration by a group of Toys "R" Us bondholders that the company is in default is a good illustration of how tricky leveraged buyout (LBO) deals might fall afoul of covenants included in the company's pre-existing debt. And sources...

US Company News: GM Surpasses Ford In Restructuring Race.
August 7, 2006... The numbers are in. The automotive underdog, General Motors Corp. (GM) turned in a first half 2006 performance that left critics wondering if its Detroit rival, Ford Motor Co., ought to take a page out of its playbook. Indeed, GM's...

Syndicated Loans: Hanesbrands In Market With Debt Package.(Morgan Stanley and Merrill Lynch)
August 7, 2006... Morgan Stanley and Merrill Lynch met with investors last Tuesday to pitch the $3.1 billion financing package for Sara Lee's tax-free spin-off of its apparel business into a publicly traded company under the Hanesbrands name. Some market players...

Firms: Sanders Ends High-Grade Biz, Keeps HY.(Sanders Morris Harris Group Inc.)(Brief article)
August 7, 2006... Sanders Morris Harris Group announced on July 28 its plans to close its high-grade corporate bond and mortgage-backed agency businesses. This announcement comes just over eight months after the establishment of the New York location, which was...

Firms: Pali Capital Expands Into Distressed Debt.
August 7, 2006... Hoping to capitalize on the imminent, although still not here yet, default cycle, New York-based broker-dealer Pali Capital announced last week that it has expanded its staff to include a special opportunities and distressed debt team. The move...

Gainers & Losers: GMAC/MagnaChip.
August 7, 2006... General Motors Acceptance Corp.'s (GMAC) bonds saw significant gains last week, as news broke that General Motors Corp. will invest more than $300 million to build its second manufacturing plant in India. Construction of the new factory, which...

Market Buzz: Richards Heads RBS Debt Markets, Asia Pacific.(John Richards joined The Royal Bank of Scotland )
August 7, 2006... John Richards has joined The Royal Bank of Scotland in Japan as head of debt markets strategy and economics for the Asia Pacific region within the bank's fully owned subsidiary in Tokyo, RBS Securities Japan Limited. In his new role, Richards,...

AMG Data Services.(high yield bond funds)(Brief article)
August 7, 2006... High yield bond funds reported $336.2 million in net inflows for the week ended last Wednesday, according to AMG Data Services. Four out of the last five weeks have produced inflows to high yield funds. Last week, 234 funds reported inflows,...

Bankruptcy: Insider Info An Issue For Ch. 11 Code.
August 14, 2006... It's been nearly a year since amendments to the US bankruptcy code went into effect last fall, and in that time the changes wrought by the modified code have begun to crystallize. Most market players agree that many aspects of the revised code...

Market View - GDP, Yield Curve: Culprits Of Widening Spreads.(gross domestic product)
August 14, 2006... Option-adjusted spreads in the US and European high yield markets do not always move in tandem, and a diversion between the two is not necessarily a warning bell. However, the recent spread widening in the US high yield market, when compared...

US Company News: Great Lakes Dredges Up Better Credit Profile.
August 14, 2006... Vastly improved second quarter earnings and an upcoming merger with a special purpose acquisition company, Aldabra Acquisition Corp., have dramatically altered Great Lakes Dredge & Dock Co.'s credit outlook over the last year. Though the...

Spotlight On CDOs: Value To Be Found In US CLO Equity.(collateralized loan obligation)
August 14, 2006... Recent leveraged loan spread widening could be a boon to new-issue collateralized loan obligation (CLO) investors - as long as the widening is in fact due to market technicals. Bear Stearns analysts said as much in a recent report, pointing out...

Spotlight On CDOs: CDO CDS Trading Tight To Cash.(collateralized debt obligation, credit default swaps )
August 14, 2006... The release of standard documentation for trading collateralized debt obligation (CDO) credit default swaps (CDS) in early June was a major step toward transforming what has historically been a long-only market - and in the weeks following, the...

Project Finance: Loan Market Invades Private Placement Project Finance Deal Turf.
August 14, 2006... Project finance investments and the private placement market have been dancing to an awkward tune since the turn of the millennium, when experimentation in the utilities industry by merchant power operators forced many buy-siders to sit out on...

Gainers & Losers: Hertz/Cinemark.
August 14, 2006... Delta Air Lines topped the gainers list last week, releasing earnings that, while containing a brutal $2.2 billion loss for the second quarter, attributed the vast majority of the loss to one-time restructuring fees. In fact, Delta actually...

Market Buzz: Fried Frank Names Seven Partners.(Fried, Frank, Harris, Shriver and Jacobson appointed Rob McBride, Brian T. Mangino, David L. Shaw, Michael J. Alter, Craig Arnott, Tommy P. Beaudreau, and Brian Kniesly)
August 14, 2006... Fried, Frank, Harris, Shriver & Jacobson announced the appointment of seven partners, beginning September 1, 2006. Attorneys elected to partner include Rob McBride, an attorney in the London corporate department. He has a focus on financing...

AMG Data Services.
August 14, 2006... High yield mutual funds reported $129 million in net inflows for the week ended last Wednesday, according to AMG Data Services. It was the third consecutive week of inflows to high yield funds. (c) 2006 High Yield Report and SourceMedia,...

Market View: HCA Will Set Buyout Tone For Q4.
August 21, 2006... High yield bond market participants are watching an upcoming item on the market's agenda that could both greatly influence junk's performance during the fall months and predict the future of other healthcare sector participants - HCA Corp.'s...

Europe: Will Philips Follow in Ineos' Footsteps?
August 21, 2006... The next record-breaking jumbo deal slated to hit the European junk market, a proposed 4.5 billion bond issue from Philips Semiconductor, will be a test of both the issuer's skill and investors' appetites, as Philips runs the risk of repeating...

Leveraged Loans: Beware Of Receding Loan Covenants.
August 21, 2006... Despite the currently robust credit environment, weakening financial covenants in the leveraged loan market may pose an ominous threat to the continued surge in market liquidity, according to a recent report by Fitch Ratings. And for high yield...

CDOs: CDO Managers Wait For Experience To Pay Off.(collateralized debt obligations)
August 21, 2006... Despite numerous calls and anecdotal evidence over recent months to the contrary, CDO investors still do not appear to be asking for much consolation when they buy into a deal run by a first-time manager. The so-called seasoned CDO managers -...

Restructuring: Dura: Next Supplier In Line For Ch. 11?(Dura Automotive hired Miller Buckfire and signed Kirkland and Ellis)
August 21, 2006... The recent news that Dura Automotive has hired Miller Buckfire, a top restructuring adviser, and Kirkland & Ellis, a law firm that has lately been involved in some high-profile Chapter 11 automotive cases, has market players scrutinizing the...

Country Profile: Turkey's Financial Markets Find Tenuous Stability.(Country overview)
August 21, 2006... After going through a significant setback several months ago, Turkish markets have managed to regain their foothold in the global financial system, largely as a result of the Turkish Central Bank's commitment to maintain exchange rate...

Gainers & Losers: Charter/Dura.(Charter Communications Holdings L.L.C., Dura Automotive)(Brief article)
August 21, 2006... Charter Communications Holdings topped the gainers last week, on the back of an announcement that it would exchange notes maturing between 2009 and 2012. As part of the exchange, it plans to issue $200 million in 10.25% notes of 2013, and $675...

Market Buzz/Data: DeAM Restructures HY Team, Sullivan Takes Over.(Deutsche Asset Management Inc., Gary Sullivan appointed)
August 21, 2006... Deutsche Asset Management (DeAM) is facing staff cuts to its high yield team in Philadelphia, as the fund management prepares to relocate to New York. Andrew Cestone, lead high yield portfolio manager for the firm's DWS brand funds, will...

AMG Data Services.
August 21, 2006... After three weeks of inflows to high yield mutual funds, the asset class reported a net outflow totaling $73.1 million for the week ended last Wednesday, according to AMG Data Services. (c) 2006 High Yield Report and SourceMedia, Inc. All...

Summer Publishing Break.
August 21, 2006... High Yield Report will be on publishing break through the remainder of August into the beginning of September, and there will be no HYR publications for the dates of August 28 and September 4. Expect the next issue of HYR on September 11.