High Yield Report articles from January 2009

High Yield Report archives from January 2009

Investors To Rating Agencies: Rate The Middlemen.(News)
January 5, 2009... Byline: Richard Kellerhals In the wake of the investment banking collapse and with Citigroup faltering, leveraged loan and high yield bond investors are concerned about how a broken-down middleman, or agent bank, could affect the deals in...

Lev Finance Market Awaits New Players.(News)(Column)
January 5, 2009... Byline: Matthew Sheahan According to the wisdom of Bud Abbott and Lou Costello, What is on second base (Who's on first and I Don't Know is playing third; Tomorrow is pitching). With trading levels thin and prices extremely low, market...

Due Diligence Challenges in Today's Financial MarketBy Kevin Kaden.(News)
January 5, 2009... Byline: Kevin Kaden In today's precarious financial market, it is no surprise that the number of mergers and acquisitions has significantly declined. Understandably, buyers and lenders have become more cautious, patient and selective, but...

Resolved: Stop All This Depression Talk.(Editorial)
January 5, 2009... Byline: Carol J. Clouse I've always loved the start of a new year. A new year fills me with that warm, fuzzy "fresh start" sensation-for a few sweet weeks, I believe that all those things I didn't accomplish the year before will be done....

2008 League Tables Illustrate Credit Freeze.(League Tables)
January 5, 2009... Byline: Matthew Sheahan The high yield loan and bond league tables for the fourth quarter of 2008 and for the year in total illustrate the extent of the credit freeze. Leveraged loan issuance took a stee dive, according to Thomson...

Market Starts 2009 Waiting For Recovery.(The Secondary)(Industry overview)
January 5, 2009... Byline: Matthew Sheahan With 2009 upon us, high yield investors are nursing their wounds and looking forward to a Happy New Year, or at least a Happy Second Half of the Year. The prognosis for the next few months is grim, but market...

Dual Tranche Deals Come Out Of The CLOset.(News)
January 12, 2009... Byline: Richard Kellerhals To combat a CLO market frozen stiff by a lack of new capital, price declines, and waning confidence, some firms are working on new CLO portfolio strategies to bring in business and keep current clients interested...

Not Halfway There, But Could It Be A Start?(Editorial)
January 12, 2009... Byline: Carol J. Clouse Gnarly readers, I beg your forgiveness in advance, but please do consider that I've been writing this column for nearly two years and have never once sunk to the depths of the Bon Jovi reference. But seeing as...

Europe's Distress: Bargains Find No Shoppers.(News)
January 12, 2009... Byline: Savita Iyer-ahrestani With most credits trading at bargain prices, the new year brings with it a great time to shop for deals in the European leveraged loan market. This has been the case for some months, actually, and looking...

High Yield Investors Go With The Fund Flows.(News)
January 12, 2009... Byline: Matthew Sheahan The disaster that was 2008 ended with the promise of a big comeback, at least in the arena of high yield bond funds. The final weeks of last year saw more inflows than outflows for the asset class, signaling renewed...

CSC Holdings Brings $844 Million To HY Market.(Market Buzz)
January 12, 2009... Byline: Editorial Staff Cablevision subsidiary CSC Holdings last Thursday priced $844 million in 8.5% senior notes due 2014, with an OID of 88.88 for a yield of 11.375%. The drive-by offering is the first U.S. high yield bond issue of the...

Market Sezz: Where's the Mezz?(News)
January 12, 2009... Byline: Danielle Fugazy Last year, more than $25 billion was raised by roughly 30 mezzanine providers, according to data from Thomson Reuters. While other lending sources have effectively dried up amid the credit crisis, one would think...

HY Market Looks Ahead To Recovery.(The Secondary)
January 12, 2009... Byline: Matthew Sheahan More investors dipped their toes into the high yield market last week, but market observers say that a full economic recovery is still at least months away. Investors looked to the high yield market with the...

Junk Bonds May Beat Loans To A Rebound.(Editors Note)
January 19, 2009... Byline: Carol J. Clouse I wouldn't want to call this too early, but it looks like the high yield bond primary is poised for a quicker recovery than its loan counterpart. Certainly this suggestion comes with one hefty caveat-whether the...

Energy Sector Pays For Past Success.(News)
January 19, 2009... Byline: Matthew Sheahan The bigger they are, the harder they fall, and few sectors were as big as energy in the high yield bond and leveraged loan markets. Even as other sectors were looked upon like lepers last year, companies like Atlas...

Banks Arrange $1.5B HY Package For Entergy.(News)
January 19, 2009... Byline: Richard Kellerhals A bank consortium is arranging a $1.5 billion high yield debt package for Entergy that will be issued to "third-party investors," according to a Securities and Exchange Commission filing. BNP Paribas is...

As Economy Worsens, Euro CLOs Hibernate.(News)
January 19, 2009... Byline: Savita Iyer-ahrestani There's little doubt among market participants that in the tainted universe of structured finance, the collateralized loan obligation has the greatest chance of survival. The CLO structure is sound and robust,...

MetroPCS Hits HY Market With $550M Drive-By.(Market Buzz)
January 19, 2009... Byline: Editorial Staff MetroPCS Communications subsidiary MetroPCS Wireless priced $550 million in 9.25% senior notes due 2014, with an OID of 89.50, in a drive-by financing last Wednesday. The Dallas-based wireless service provider...

Market: No Recovery On Recovery Rates.(News)(Industry overview)
January 19, 2009... Byline: Richard Kellerhals Those who believe in karma think that you get back what you give out. Unfortunately, in leveraged finance, what you get back may be just a sliver of what you gave, especially right now. Case in point, the...

Nervous HY Investors Want Yield.(The Secondary)
January 19, 2009... Byline: Matthew Sheahan High yield bond investors are hoping to get back into the market in their search for decent returns, but they are stuck between their desire for yield and their aversion to risk in difficult economic times. ...

Restructuring? Start Now And Bring A Safety Net.(Editorial)
January 26, 2009... Byline: Matthew Sheahan America has entered an era of renewal and repair. As a new Congress and president begin to reshape public policy, our financial institutions and companies are rebuilding. Whether you agree with his politics or not,...

Fresenius Nudges Open Euro HY Gate.(News)
January 26, 2009... Byline: Savita Iyer-Ahrestani Healthcare provider Fresenius's much-anticipated dual tranche high yield bond-the first high yield deal to hit Europe since July 2007-has injected a dose of optimism into an otherwise browbeaten market. ...

Healthy Companies Look To Those With Faint Pulse.(News)
January 26, 2009... Byline: Richard Kellerhals While the leveraged buyout market remains as lively as a morgue, the M&A market has seen some action from healthier companies acquiring others that are on their deathbed. Two examples of such transactions are...

Day Of Drive-Bys Brings Three HY Issues.(Market Buzz)
January 26, 2009... Byline: Editorial Staff In a day of drive-bys, three companies issued $1.597 billion in new bonds last Thursday. The companies had initially been on the calendar to price $1.75 billion. Crown Castle International issued $813 million in 9%...

Media Cos. Hit With Double Whammy.(News)
January 26, 2009... Byline: Carol J. Clouse If Lennon and McCartney were to write "A Day in the Life" today, they might need to change the words to, "I wanted to read the news today, oh boy, but my paper stopped coming." Certainly, the decline of the...

No New Optimism Yet For HY Secondary.(The Secondary)
January 26, 2009... Byline: Matthew Sheahan Whatever optimism American citizens shared in welcoming a new president into office did not take root on the high yield secondary market last week, which saw no kinetic energy from equity gains and quickly lost what...