High Yield Report articles from February 2009

High Yield Report archives from February 2009

As Distressed Gets Hot, Some Get Cold Shoulder.(News)(Survey)
February 2, 2009... Byline: Richard Kellerhals While distressed companies are garnering a lot of attention from investors, with many planning to up their distressed exposure this year, those investments are going to be aimed at specific high-performing...

Bankruptcy Round '09: Creditors Take The Gloves Off.(News)
February 2, 2009... Byline: Carol J. Clouse No one ever called bankruptcy pretty, but when searching for an analogy for this cycle as compared to those of the past, Black Friday at the Macy's shoe department comes to mind. Maybe that's a bit strong, as it...

CLO Managers Face Mounting Troubles.(News)
February 2, 2009... Byline: Richard Kellerhals For CLO managers, watching the declining performance of their underlying collateral has been about as much fun as a Tijuana jail. And it doesn't look like they'll make bail anytime soon. A number of issues...

Three Issues Hit HY Market.(Market Buzz)
February 2, 2009... Byline: Editorial Staff Satellite service provider Intelsat last Thursdayissued $354 million in 8.875% senior notes due 2015, with an OID of 88.5. The company initially planned an offering of $200 million. It issued the notes through its...

Preemptive Bankruptcies May Increase.(News)
February 2, 2009... Byline: Matthew Sheahan While the recession promises to send many companies into bankruptcy, some might go there on their own ahead of time, joining the universe of distressed exchanges and other measures used for coping with oncoming...

Bad News Bears Still Mauling HY.(The Secondary)
February 2, 2009... Byline: Matthew Sheahan High yield investors on the secondary market remained cautious last week as the economic news brought little cheer despite the U.S. House of Representatives passage of an $819 billion economic stimulus bill. ...

S&P: HY Market Shows Signs of Improvement.
February 9, 2009... Byline: Richard Kellerhals The high yield bond and leveraged loan markets showed signs of improvement in January, according to a report by Standard & Poor's. At the end of the month, spreads on the S&P speculative-grade composite...

Lenders Approve Accuride's Amendment.
February 9, 2009... Byline: Richard Kellerhals Accuride, an Evansville, Ind.-based auto parts manufacturer, has amended its credit facility consisting of a $550 million term loan B and a $125 million revolver. Citigroup is the administrative agent. ...

Kansas City Plan Rolls out HY Search.(high yield)(Kansas City Police and Civilian Employees' Retirement System)(Gresham Investment Management)(Pacific Investment Management Company, LLC)(LSV Asset Management)(GE Asset Management)(Brief article)
February 9, 2009... Byline: Jakema Lewis, Investment Management Weekly The $600 million Kansas City Police and Civilian Employees' Retirement System has instructed its consultant to begin a search for a high yield fixed income manager, said James Pyle, manager...

CastleOak Adds Two Fixed Income Execs.
February 9, 2009... Byline: Matthew Sheahan CastleOak Securities has added two executives to its capital markets team. Hiram Matthews joins as senior managing director and head of structured products, and Joseph McManus joins the firm's fixed income sales...

NY Boutique I Bank Nabs Former Wachovia MD.
February 9, 2009... Byline: Richard Kellerhals Sonenshine Partners, a New York-based investment bank, has hired David Haase, a former managing director in Wachovia's leveraged finance group. In his new position, Haase will maintain his managing director title...

Trump Extends Forbearance Agreement.(Trump Entertainment Resorts Inc.)(Brief article)
February 9, 2009... Byline: Matthew Sheahan Casino operator Trump Entertainment got a one-week extension Wednesday on its forbearance agreement with note holders. The company now has until Feb. 11 to pay the interest payment it owes bondholders or reach an...

Buyers Scarf Up Landry's Bonds.
February 9, 2009... Byline: Matthew Sheahan Landry's Restaurants Wednesday issued $295.5M in 14% senior secured notes due 2011, with an OID of 88 for a total yield of more than 20%. The restaurant chain operator will net $260 million after the discount. ...

U.K. Defense Co. Cobham Seeks Private Funds.(News)
February 16, 2009... Byline: Editorial Staff Another U.K.-based defense and security systems company is looking to the U.S. private market for funding. This time it is Cobham plc that is in the market, via Banc of America Securities and RBS Greenwich Capital....

Exchange Vet Returns To Changed Market.(News)
February 16, 2009... Byline: Matthew Sheahan The last time James Schneider oversaw a debt exchange, Bill Clinton was still going through the rough spots of his first term as President, and students at the University of North Carolina were planning the first...

Dole Food Eyes New Bonds.(News)
February 16, 2009... Byline: Richard Kellerhals Dole Food Co. is looking to issue new secured bonds to help pay down $350 million in 8.625% senior unsecured notes coming due May 1, sources said. It couldn't be determined which banks would underwrite the...

Denbury Plans $350M Drive-By Issue.(News)
February 16, 2009... Byline: Matthew Sheahan Denbury Resources is looking to pull off a drive-by high yield bond offering today to the tune of $350 million. The Plano, Texas-based oil and natural gas exploration and production company plans to use the proceeds...

Spectrum Brands Secures $235M DIP.(News)
February 16, 2009... Byline: Richard Kellerhals Spectrum Brands, the Atlanta-based manufacturer of Rayovac batteries and Remington shavers, has secured a $235 million debtor-in-possession loan from Wachovia. The company filed for bankruptcy protection on...

Moody's: Default Rate To Peak In Q4.(News)
February 16, 2009... Byline: Matthew Sheahan The global speculative-grade default rate will likely peak in the fourth quarter of this year, according to Moody's Investors Service. The rating agency predicts it will reach a peak of 16.4% in November before...

Hawker Beechcraft TLB Falls 5.5 Cents.(News)
February 16, 2009... Byline: Richard Kellerhals On Monday, Hawker Beechcraft, a Wichita, Kan.-based aircraft manufacturer, saw the price on its $1.3 billion term loan B fall 5.5 cents to 44.5. That same day the company announced that it would cut 2,300...

Denbury Prices $420 In Drive-By.(News)
February 16, 2009... Byline: Matthew Sheahan Denbury Resources priced $420 million in a drive-by high yield issuance today, up from the $350 million it initially planned. The Plano, Texas-based oil and natural gas exploration and production company priced...

Harrah's, Clear Channel Draw Down On Revolvers.(News)
February 16, 2009... Byline: Richard Kellerhals Clear Channel and Harrah's Entertainment have drawn down on their revolvers to shore up liquidity. Clear Channel tapped the remaining $1.6 billion available under its $2 billion revolver. It couldn't be...

Three Companies Tapping HY Market For $950M.(News)
February 16, 2009... Byline: Matthew Sheahan Three companies, including recent issuer Chesapeake Energy, are looking to price $950 million in new high yield bonds, with Chesapeake and Forest Oil planning drive-bys today. Hospital operator HCA is also on the...

SEC Makes Final XBRL Mandate.(News)(Securities and Exchange Commission)(extensible business reporting language)(Brief article)
February 16, 2009... Byline: Matthew Sheahan The Securities and Exchange Commission Tuesday approved final rules for XBRL tagging that will require all public companies to use the electronic data tagging system by 2011. The 500 largest public companies...

Kansas City Plan Rolls out HY Search.(Kansas City Police and Civilian Employees' Retirement System)(Gresham Investment Management)(high yield)(Brief article)
February 16, 2009... Byline: Jakema Lewis The $600 million Kansas City Police and Civilian Employees' Retirement System has instructed its consultant to begin prepping a search for a high yield fixed-income manager, said James Pyle, manager of the Missouri...

Young Broadcasting Misses Second Interest Payment.(News)(Brief article)
February 16, 2009... Byline: Richard Kellerhals For the second time in less than a month, Young Broadcasting has missed making an interest payment on its debt. The New York-based TV station owner missed a $4.5 million interest payment on a $350 million...

Aladdin Capital Launches DIP Fund.(News)
February 16, 2009... Byline: Richard Kellerhals Stamford, Conn.-based Aladdin Capital Management has launched a fund that will invest in debtor-in-possession loans to take advantage of companies looking to restructure. Calls to see how much capital Aladdin...

Can Sirius XM Refuse This Offer?(News)
February 16, 2009... Byline: Editorial Staff Sirius XM Radio has been working with lawyers to prepare a possible bankruptcy filing, according to press reports. EchoStar Corp., the satellite-TV group run by Charles Ergen, has offered to restructure Sirius...

Three New HY Issues Price for $1.3B.(News)
February 16, 2009... Byline: Matthew Sheahan Three companies, Chesapeake Energy, Forest Oil and HCA, hit the high yield primary market Wednesday and priced more than $1.3 billion in new bonds. Chesapeake Energy returned to the high yield market after only...

Trump Gets Another Extension.(News)(Trump Entertainment Resorts Inc.)(Brief article)
February 16, 2009... Byline: Matthew Sheahan Atlantic City casino operator Trump Entertainment was granted another extension by debt holders, as it continues to negotiate a refinancing agreement, according to a filing the company made with the Securities and...

Wachovia: CLOs Breaching Tests Up 36%.(News)
February 16, 2009... Byline: Richard Kellerhals Wachovia reported that the number of CLOs breaching their overcollateralization and interest diversion tests increased by 36% in January. The increase means that 125 of the 508 U.S. CLOs sold since 2002...

GM Bondholders Could Recover 50%.(News)
February 16, 2009... Byline: Richard Kellerhals If a deal were inked today, at this point in negotiations, General Motors bondholders would recover 50% of their money, according to a JPMorgan analyst's assessment. This assessment, made by Eric Selle, is...

Talbots Secures $200M Bridge Loan From Owner.(News)
February 16, 2009... Byline: Richard Kellerhals Talbots, a Hingham, Mass.-based clothing retailer, has secured a $200 million bridge loan from its owner Aeon at a price of Libor plus 600 bps. The debt will not be shopped to investors. Talbots will use the...

Cablevision, Precision Drilling Plan $750M In HY.(News)
February 16, 2009... Byline: Matthew Sheahan Cablevision and Precision Drilling could issue $750 million or more in high yield bonds this week. Both companies are addressing upcoming debt maturities. Cablevision subsidiary CSC Holdings expects to price...

Concept Capital Adds Fixed Income Group.(News)
February 16, 2009... Byline: Matthew Sheahan Institutional broker Concept Capital has expanded its business into fixed income sales and trading, the New York-based firm announced today. The new effort includes a high yield component, and the firm expects to...

Should The Government Guarantee DIPs?(News)
February 16, 2009... Byline: Richard Kellerhals To assure banks begin to dole out more debtor-in-possession financings, some market participants say the government should step in and guarantee some or all DIP financings. However, others argue that allowing the...

BTIG Starts Fixed Income Group With UBS, Citi Vets.(News)(appointment of Jon Bass and John Purcell)
February 16, 2009... Byline: Matthew Sheahan Two fixed income veterans have set up shop at a brokerage house where no fixed income group existed previously. UBS veteran Jon Bass and former Citi executive John Purcell are now co-heads of global fixed income...

Europe's Banks Need Government Life Support.(News)
February 16, 2009... Byline: Savita Iyer-Ahrestani Further write-downs in structured credit and more trading book losses; a marked deterioration in loan quality given the economic recession; continued downward pressure on earnings because of a serious decline...

Realogy's Failed Exchange Could Provide Road Map.(News)(Case overview)
February 16, 2009... Byline: Richard Kellerhals Members of the global private equity practice at international law firm Paul Hastings believe Realogy's failed bond-for-loan exchange could provide guidance on future cases. Specifically, it could offer guidance...

Charter To File For Bankruptcy.(News)
February 23, 2009... Byline: Matthew Sheahan Charter Communications will file for bankruptcy in a prepackage deal that will wipe out $8 billion in debt, the company announced yesterday. The St. Louis-based cable service provider said it reached an agreement...

Young Broadcasting Files For Ch. 11.(News)
February 23, 2009... Byline: Matthew Sheahan After much speculation and missed interest payments, Young Broadcasting has filed for bankruptcy. The company filed for Chapter 11 protection in the United States Bankruptcy Court for the Southern District of New...

Liberty Shores Up Sirius For Equity.(News)
February 23, 2009... Byline: Carol J. Clouse Liberty Media Corp. has agreed to provide as much as $530 million in term loan financing to Sirius XM Radio in return for an equity interest in the satellite radio company, the companies announced today. Under...

GE To Dole Out $2B In DIP Loans In '09.(News)
February 23, 2009... Byline: Editorial Staff GE plans to hand out approximately $2 billion in debtor-in-possession loans this year, up from the $1.9 billion it awarded companies restructuring under Chapter 11 protection last year, according to Bloomberg. ...

LyondellBasell Misses Bond Payment.(Brief article)
February 23, 2009... Byline: Matthew Sheahan The European operations of bankrupt chemical and plastics company LyondellBasell missed a Feb. 15 interest payment on $615 million and a[logical not]500 million in 8.375% bonds due 2015. The Dutch chemical...

Fridson Names Biz Dev Leader.(News)
February 23, 2009... Byline: Editorial Staff Fridson Investment Advisors has tapped John Creswell as its director of business development and consultant relations. Creswell was most recently co-director of the taxable fixed income unit of Nuveen...

Banks Syndicate TL For NiSource.(News)
February 23, 2009... Byline: Richard Kellerhals JPMorgan and Wachovia have syndicated a $265 million term loan for NiSource, a Merrillville, Ind.-based natural gas company. The banks syndicated the loan at Libor plus 538 bps to a group of lenders including...

Euro HY Market Is 'Breath of Fresh Air' for F&C.(News)
February 23, 2009... Byline: Savita Iyer-Ahrestani High yield market participants in Europe couldn't have been happier with the bonds issued a few weeks ago by health-care concern Fresenius. The first high yield deal in 18 months, many believed it would also...

Euro CDS Dealers Agree To Trades, Clearing Path For Clearinghouse.(News)
February 23, 2009... Byline: Editorial Staff European credit default swap dealers have agreed to guarantee trades through a clearinghouse, according to Bloomberg. European regulators have been trying to coerce the privately traded market to become more...

Gartmore Adds New Credit Chief.(News)
February 23, 2009... Byline: Matthew Sheahan London-based Gartmore has named John Anderson to its fixed income group as head of credit. He will join at some point later this year and report to Dominic Rossi, the firm's chief investment officer. Anderson will...

TRW Automotive Likely To Violate Covenants.(News)
February 23, 2009... Byline: Matthew Sheahan TRW Automotive is likely to violate leverage and interest coverage covenants that control its secured credit facility, according to an analyst with KDP Investment Advisors. Judging by the fourth quarter 2008...

Charter Leads Gainers In HY Secondary.(News)
February 23, 2009... Byline: Matthew Sheahan Bankrupt cable television operator Charter Communications leads the gainers in high yield secondary trading for the week ending Feb. 19, according to Advantage Data. Charter's bonds took the top seven spots on the...

New Ratings Mean New Problems For CLO Managers.(News)
February 23, 2009... Byline: Richard Kellerhals On February 4, Moody's Investors Service revised the rating methodology it uses to rate CLOs, spurring a rash of CLO downgrades that has yet to end. As a result, CLO managers have begun requesting amendments to...

In Trading, Large Bank Pain Is Small Firm Gain.(News)
February 23, 2009... Byline: Matthew Sheahan A sea change is stirring in the sales and trading world of leveraged finance. The shakeout at the large banks has been countered by high yield debt and distressed groups forming or expanding at smaller firms. And...

GM Bondholders Hold Out For More.(News)
February 23, 2009... Byline: Richard Kellerhals General Motors bondholders are digging in their heels, hoping to be paid more when the beleaguered car maker exchanges their bonds for equity. On Feb. 17, GM submitted an amended restructuring plan to the...

Loan Investors Look To CAMs For Equality.(collateral allocation mechanism)
February 23, 2009... Byline: Richard Kellerhals For investors who have lent to companies operating in various countries, egalitarianism at the time of recovery comes in the form of a collateral allocation mechanism. This legal provision, some market...

Companies Keep Busy Filing Bankruptcies.(News)
February 23, 2009... Byline: Matthew Sheahan This year is fast becoming one dominated by bankruptcies. February alone has seen at least seven bankruptcies among speculative-grade companies, and there are likely to be many more. "Clearly the momentum is...

Tyson To Issue $500 Million In Notes.(News)
February 23, 2009... Byline: Richard Kellerhals Tyson Foods, a Springdale, Ark.-based chicken producer, plans to issue $500 million in senior unsecured notes due 2014. The bonds are scheduled to price today, according to KDP Investment Advisors. Calls to...

FINRA: Bond Trading Volumes Soar To Two Year High.(News)
February 23, 2009... Byline: Editorial Staff Data from the Financial Industry Regulatory Authority, an independent securities regulator, shows that the volume of corporate bond trades in the U.S. has risen to its highest level in two years, according to...

Q&A: Needleman Sees More Moves Ahead.(News)(Eric Needleman)(Interview)
February 23, 2009... Byline: Matthew Sheahan After heading the high yield group at KBC Financial Products for five years, Eric Needleman, along with the rest of the KBC high yield team, packed up in January and moved to Sterne Agee. While the move is not a...

Freescale Looks To Bondholders To Finance New TL.(term loan)(Statistical data)
February 23, 2009... Byline: Richard Kellerhals Freescale Semiconductor, an Austin, Texas-based microchip maker, is trying to land $1 billion from lenders for a new senior secured term loan to help shore up liquidity. But because financing is so hard to come...

Leveraged Loan Market Feels The Love.(News)
February 23, 2009... Byline: Richard Kellerhals Leveraged loan investors are blushing. And it's not from a kiss on Valentines Day. For the first seven weeks of 2009, the leveraged loan market gave investors some much-needed loving. Year-to-date returns are...

Sponsor-to-Sponsor Deals May Breathe Life Into PE.(News)(Global Tel*Link)(Gores Group)(private equity)
February 23, 2009... Byline: Ken MacFadyen, MAJ As of early February, the private equity market remained dead. Lenders, still gun-shy, are only backing the strongest credits, while potential targets have little incentive to sell into the teeth of an historic...

Trump Entertainment Files Chapter 11.(News)
February 23, 2009... Byline: Kelly Holman, IDD Trump Entertainment Resorts has filed for Chapter 11 protection in New Jersey, the company said today. The Atlantic City, N.J.-based casino operator will not seek debtor-in-possession financing. Instead, it...

Morgan Stanley Trading Chief Resigns.(News)
February 23, 2009... Byline: Richard Kellerhals The head of European leveraged credit trading for Morgan Stanley has resigned. Robert Lepone, who oversaw various teams, including high yield bonds, leveraged loans, credit default swaps and distressed debt, left...

Hotchkis and Wiley Starts HY Group.(News)
February 23, 2009... Byline: Matthew Sheahan Investment management firm Hotchkis and Wiley Capital Management has put together a high yield bond group that it expects will be up and running sometime in the first quarter. The Los Angeles-based firm tapped...