High Yield Report articles from January 2008

High Yield Report archives from January 2008

Don't take Your Dough Away From Me ...
January 7, 2008... Don't you leave my deal in misery. Come on, baby, let's start anew... Or, very likely, let's not. Crews were still sweeping away the mess in Times Square when word surfaced of yet another buyout deal left at the altar. This time it was...

Dana Corp. To Roll Out Of Chapter 11.
January 7, 2008... Bankrupt auto parts builder Dana Corp. has got the stamp of approval for its reorganization plan from a New York judge, meaning it might be only a few weeks away from rolling out of Chapter 11. The Toledo, Ohio-based company said it expects to...

Group Crusades For Better Bond Protections.
January 7, 2008... A bond investor group is calling for increased protections for bondholders. The Credit Roundtable released its first white paper in December and will move on two more initiatives later this year. Its first effort is focused on investment-grade...

New Year's Party Ends Early For High Yield.
January 7, 2008... The New Year began with more of the same economic turmoil that dominated the high yield market in the second half of 2007. Trading volumes were low and more economic bad news reared its ugly head last week. The long-feared petroleum...

The Times Are A-Changin', Will The League Tables?
January 7, 2008... Lower totals on the 2007 high yield league tables will not likely surprise anyone. But reaction to the current credit market may bring changes to the league tables for 2008, as the usual suspects adjust strategy and investors look overseas for...

Recovery Rating Methodology To Carry On.
January 7, 2008... With defaults expected to rise anywhere from 2% to 5% in 2008, some investors are looking for the ratings agencies to boost their due diligence when assigning a credit facility's recovery rating. But, Standard & Poor's, Moody's Investors...

The Secondary: No New Cheer In The New Year.
January 14, 2008... A negative economic outlook dominated the high yield secondary market last week, despite some assurances that this year will see some recovery. And economic indicators did little to shake investors perceptions. The general consensus over...

Uncertainty Reigns As More Investors Look To Distressed.
January 14, 2008... The downturn in the economy and continued fears about the health of the credit markets have at least one upside: Distressed debt investors finally have a place to put the money theyve been raising for the past two years. As the distressed debt...

Mid-Market Deals Not Hurt By Debt Squeeze.
January 14, 2008... Despite an overall slowdown in M&A activity from the last couple of years, market participants forecast new opportunities in midsize deals, especially those in the technology, aerospace/defense and foreign markets. These sectors will experience...

When Markets Are Low, Some Get High.(Cover story)
January 14, 2008... Back when Gordon Gekko pronounced greed good, some of the side effects of the pursuit of success and riches on Wall Streetthe heavy drinking and drug abuseappeared to afflict the investment banking community like a rogue case of chicken pox at...

Energy Companies Prepare Issues.
January 14, 2008... Two energy companies were preparing to issue bonds last week. Atlas Energy is scheduled to price $400 million in senior unsecured notes due 2018 this Thursday; it plans to use the proceeds to refinance a credit facility it used to acquire DTE...

Let The Default Dance Begin.
January 14, 2008... The ratings agencies have predicted a rise in corporate defaults for 2008 for months, and now weve seen at least a couple of companies begin the new year by missing coupon payments on their bonds. Which leads us to wonder who might be next. ...

As Euro PE Pauses, Corporates Ready for M&A.
January 14, 2008... European corporatessqueezed out of the buyout game for far too long by private equity sponsorsnow have a chance to jump into the space created by last summers liquidity crunch. As it becomes harder and more expensive for private equity firms to...

Economic fears Still dominate HY Market.(Market share report)
January 21, 2008... With the primary market still a shadow of its former self, the high yield secondary market chugged along last week, subject to continuous bad economic news. More investors moved into Treasurys and losers dominated gainers. More lousy...

Bright Horizons Deal Depicts A New Breed Of M&A.
January 21, 2008... The deal that Bain Capital has agreed to in its buyout of Bright Horizons Family Solutions, a Watertown, Mass.-based child care and educational company, is a likely indication of what the M&A and corporate credit markets will be seeing...

Lev Finance Market Evolving In Persian Gulf.
January 21, 2008... The countries of the Persian Gulf region are playing an increasingly important role in the corporate credit markets, both through their investment in U.S. investment banks and private equity firms and through the development of corporate debt...

Another Way To Judge The Overhang.
January 21, 2008... I generally take a somewhat cynical view of what dealmakers say on public panels, simply because, market conditions be damned, they always seem to find something to wax optimistic about. But I must admit that at last weeks annual meeting of...

J. Giordano Kills Junk Sales And Trading.
January 21, 2008... The credit market downturn has hurt the smaller firms as well as the big guys. J. Giordano Securities Group, a Stamford, Conn.-based investment banking firm that serves small-cap and middle-market companies, eliminated its high yield sales and...

CDS, LCDS Markets Grab The Limelight.
January 21, 2008... Two weeks ago, bond luminary Bill Gross got out his megaphone and warned investors that increased use of credit default swaps would further damage an already battered market. However, this warning appears unlikely to deter growth in CDS. As...

HY Market Skeptical Of Rescue Efforts.
January 28, 2008... The high yield market continued to duck and cover last week as government efforts to help the economy appeared to many to be too little, too late. The Federal Reserve started the week with a surprise rate cut, seeking to limit the damage...

Sun Capital Goes To The Mattresses For Kellwood.
January 28, 2008... If at first you dont succeed, try getting hostile. That seems to be the working motto of Sun Capital Securities Group, which has pulled out all the stops in its effort to buy apparel maker Kellwood. Sun Capital is now engaged in a hostile...

ReMax OID Drops To 90, Will Others Follow?
January 28, 2008... Banks involved in a $295 million credit facility for Denver-based real estate agent ReMax International have dropped the deals original issue discount to 90, a low point that has not been reached since a JPMorgan-led deal for Palm back in...

Should We Measure Quality Over Quantity?
January 28, 2008... Stephen King has written round about 200 stories, including roughly 50 novels. That doesnt necessarily make him the best writer around, just one of the most prolific. But what about investment banks and their deals, specifically their high...

Quebecor And Buffets Head Into Bankruptcy.
January 28, 2008... In a credit market thats dry as the desert, Quebec-based multinational printing company Quebecor World has run for cover from the heat of its creditors, filing for protection under Canadas Companies Creditors Agreement Act and seeking...

TXU: Private Equity's Landmark Deal.
January 28, 2008... When TPG and Kohlberg Kravis Roberts executives sat down with World Wildlife Fund chairman emeritus William Reilly to meet with members of the Environmental Defense organization at the San Francisco Mandarin Oriental Hotel in February 2007, the...

Why Some M&A Deals Work Better.
January 28, 2008... Executives want to deliver an acquisition that brings the proverbial synergies to their organization. Getting deals right is important when the M&A market is riding high, funding is plentiful and competition drives up prices in bidding wars....