High Yield Report articles from January 2007

High Yield Report archives from January 2007

CLOs: CLOs May Find Enemy In Lite And "Friendly" Loans.
January 8, 2007... With CLO managers ramping up funds in record numbers, investors have been scrambling to cash in on the diverse investment strategies that make these vehicles a safe choice for yield. However, a recent survey from Fitch Ratings found that these...

LEAGUE TABLES: High Yield League Tables 2006: Usual Suspects, Unusual Volume.(Industry overview)
January 8, 2007... The high yield league tables for 2006 released last week reveal that while the bookrunners in the top 10 were the usual suspects, the volume and proceeds from this past year were anything but typical. The market saw a sharp increase in high...

EUROPE- Not All Is Quiet On The Eastern Front: Europe's Loans Show Up High Yield.(leveraged loans)(Industry overview)
January 8, 2007... European issuers love the syndicated loan market - and the impressive $372 billion in leveraged loan paper underwritten in 2006, according to Thomson Financial, is clear proof of that. Over the course of last year, the leveraged loan space...

Market Buzz: Calyon Bulks Up U.S. Credit Team.(David Kranich, Rohin Saluja and Behr Rahaii joined)
January 8, 2007... Calyon recently announced four additions to its credit markets and CDO business. David Kranich, who most recently spent six years at Salomon Smith Barney, joins as a high yield trader, while Rohin Saluja has come on board as a correlation...

Gainers & Losers: Delta/Ford.(airline industry and automobile industry sales)(Brief article)
January 8, 2007... The airline industry posted strong results last week, giving both Delta Air Lines and Northwest Airlines spots on the gainers list. Delta and Northwest, along with several other major carriers, followed Southwest Airlines' lead by raising...

Distressed: Make Room For A Bit Of Doom And Gloom.
January 15, 2007... Distressed debt investors in 2006 felt a lot like the Maytag repairman from the old TV commercials. They were at the ready for calls that never came as the economy hummed along blissfully. But it is a new year, and distressed debt investors...

PIPELINE: Market Sees Skewed Vision In AMO's Lastest Acquisition.(Advanced Medical Optics plans acquisition of IntraLase Corp.)
January 15, 2007... Although it is in the business of providing 20/20 vision, Advanced Medical Optics' perception may be a bit blurry on its most recent acquisition announcement. The company will be acquiring IntraLase Corp. for approximately $808 million in cash,...

Ratings: Doral Downgrades Drop Stock, Raise Doubts.
January 15, 2007... Fresh into the new year, one company is experiencing a painful hangover, but not from a joyous New Year's Eve celebration. Doral Financial Corp. was on the receiving end of downgrades on Jan. 5 from both Moody's Investors Service and Standard &...

Market Buzz: Evergreen Branches Out With ECM Acquisition.(European Credit Management Ltd.)
January 15, 2007... Evergreen Investments, the asset management division of Wachovia Corp., is set to acquire a majority interest in European Credit Management Ltd. (ECM), a privately held, London-based fixed income investment management firm. Announced last week,...

News: IACPM Wants Standardization, Watches Risks.(International Association of Credit Portfolio Managers)
January 15, 2007... The importance of credit risk management has certainly ballooned over the past few years, with increasing competition for yield. With that in mind, the International Association of Credit Portfolio Managers (IACPM) is heading into 2007 with a...

News: Clearwater Issues Novel Asia Ex-Japan CLO.(Clearwater Capital Partners, Collateralized loan obligations)
January 15, 2007... Private equity firm Clearwater Capital Partners last week launched the first publicly rated CLO backed by Asia ex-Japan distressed debt. The offering was small, at only $146 million, but it signifies the growth many say is overdue in the Asian...

News: Sbarro Gets Free Credit Boost Toppings To Go.
January 15, 2007... It was time for investors to line up for a slice last week as Sbarro Inc. was set to price $150 million in eight-year senior notes due 2015 and $175 million in bank loans. The Melville, N.Y.-based pizzeria chain got freshly delivered credit...

Gainers & Losers: Delta/GM & Ford.(Brief article)
January 15, 2007... The airline industry dominated the gainers list for the second week as consolidation bids and rumors continue to buzz around the major carriers. Most recently, the bidding war for Delta Air Lines heated up last week as US Airways increased its...

TRENDS: Lawyers See Increased Loan Buyer Blacklists.
January 22, 2007... Debt investors who are adamant about enforcing covenant rights or who are otherwise more activist in their investments may find themselves increasingly blacklisted from bank loan deals, according to attorneys who are familiar with the leveraged...

PipELINE: Investors Tuned In To Clear Channel Buyout.(Clear Channel Communications Inc.)(Thomas H. Lee Partners and Bain Capital Partners)
January 22, 2007... Before the end of the year, leveraged finance investors will likely have the chance to invest in more than $20 billion in debt offered by Clear Channel Communications. The San Antonio, Texas-based media and broadcasting company, which owns more...

M&A: FairPoint Acquisition A Good Call, Investors Say.
January 22, 2007... FairPoint Communications' announcement last week that it will purchase the New England wireline operations of Verizon Communications has raised questions concerning a potential $1.7 billion debt financing amid declining wireline subscriptions...

Q&A: Infrastructure Investing Hits U.S. Shores.(Alec Montgomery of Royal Bank of Scotland PLC)
January 22, 2007... Infrastructure investment has finally come of age in the U.S., as Goldman Sachs, JPMorgan, Morgan Stanley and others have either raised dedicated equity funds or established in-house pools of capital to target these assets. The Royal Bank of...

CDO NEWS: Morgan Stanley: CDO Managers Make Or Break Equity Returns.(collateralized debt obligations)
January 22, 2007... A phrase repeated so often it sounds like a broken record - that the firm managing a CDO makes a difference in its overall performance - must be falling on deaf ears, some say, as more and more new managers set up shop. While a firm classified...

News: Aramark Serves Up High Yield To Hungry Investors.
January 22, 2007... Aramark Corp. is likely to be the company responsible for the hot dog or the bag of peanuts you buy at a baseball game or the lunch children are served at school. It also provides facilities management and uniforms and professional clothing and...

Market Buzz: State Street Adds Two To High Yield Team.(Pilgrim's Pride Corp. credit ratings)(State Street Global Advisors Inc. appointed Thomas V. Stolberg, Charles M. Haley)(Suneel Kamlani replaces Mike Bolin at the UBS Investment Bank)
January 22, 2007... State Street Global Advisors, the investment management arm of State Street Corporation, announced last week that it has added two senior high yield analysts to its global fixed-income group. In their new roles, Thomas V. Stolberg, CFA, and...

Gainers & Losers: Tembec/Dillard's.(Tembec Industries Inc.)(Adelphia Communications Corp.)(Brief article)
January 22, 2007... Canadian forest products company Tembec Industries made gains last week, as the company is looking more attractive to investors thanks to a weakened Canadian dollar. On Jan. 11, the currency touched a 13-month low of 84.72 U.S. cents and is...

TRENDS: Corp. Bonds Are Stable, But Worries Persist.
January 29, 2007... U.S. corporate bonds are stable and sailing through calm waters, but leveraged buyout volume and threats of an economic downturn may disrupt the credit cycle this year, according to market observers. While nothing on the horizon points to...

PIPELINE: Rite Aid Stores Seek To Fill Hefty Prescription For Debt.(Jean Coutu Group Inc.)
January 29, 2007... Rite Aid Corp. is looking to fill a big prescription for debt to make itself the largest chain of pharmacies on the East Coast. The Camp Hill, Pa.-based operator of drugstores plans to price a sizable debt package that may include up to $1.7...

Q&A: GSC Group's Analysis Goes With The Cash Flow.(Seth M. Katzenstein and Alexander B. Wright)(Interview)
January 29, 2007... GSC Group's Seth M. Katzenstein, managing director and head of portfolio management and underwriting for U.S. collateralized corporate debt, and Alexander B. Wright, managing director and head of origination for U.S. collateralized corporate...

COMMENTARY: The Not-So-Secured Side Of Second Liens.
January 29, 2007... Second lien bonds were a rarity just five years ago, but they are casually accepted today as an important and enduring part of the leveraged finance landscape. For investors, a second lien is supposed to promise some margin of safety in a...

NEWS: Snoqualmie Investors Bet On Gambling Market.(Snoqualmie Entertainment Authority )
January 29, 2007... Investors put their chips on gaming success as the Snoqualmie Entertainment Authority priced $330 million in high yield bonds last week. The issuance illustrates the confidence that investors have in the gaming market, even as competition heats...

NEWS: What's Next For Cablevision?
January 29, 2007... With the latest "best and final" acquisition offer from the Dolan family rejected by Cablevision's Special Transaction Committee, is a debt package from the company off the table for good? Many market watchers say not necessarily. There...

Market Buzz: Moody's Appoints New Senior Management.(Bankruptcy Management Solutions credit ratings)(Moody's Investors Service promoted Jennifer Elliott, Thomas Keller and Andrew Kriegler)(European High Yield Association appointed Craig Abouchar, Bryant Edwards )
January 29, 2007... Moody's Corp. announced a flurry of changes last week, as Jennifer Elliott was named group managing director for Moody's Investors Service Asia, succeeding Thomas Keller who was appointed group managing director of global project finance and...

CDO SPECIAL: Stiff Comp For Loan Paper Will Slow New Euro CLOs.(collateralized loan obligations)(collateralized debt obligations)
January 29, 2007... Is the heyday of European collateralized loan obligations drawing to a close? This sector, which saw unprecedented activity in 2006 as a result of a whole host of new parties (particularly entrants from the U.S.), could well be slowing...

Gainers & Losers: Dana/Delta.(Delta Air Lines Inc.)(Brief article)
January 29, 2007... Dana Corp. settled near the top of the gainers list last week, as it continued to feel the positive effects of selling its trailer axle manufacturing assets to a subsidiary of Hendrickson International earlier this month. The deal totaled $31...