High Yield Report articles from June 2009

High Yield Report archives from June 2009

Cablevision Extends Part of Term Loan.(News)
June 1, 2009... Byline: Richard Kellerhals Cablevision, a Bethpage, N.Y.-based cable television operator, has received an amendment from its lenders to extend about a third of its $3.4 billion term loan, according to Bloomberg. Lenders agreed to allow...

Jefferies Builds HY Sales and Trading.(News)
June 1, 2009... Byline: Carol J. Clouse Jefferies & Co. continues to expand its debt team, making additions to its high yield, leveraged loan and distressed debt sales, trading and research group. Since hiring Robert Harteveldt, a 24-year Bear Stearns...

GLC Launches Advisory Arm.(News)
June 1, 2009... Byline: Jonathan Marino, MergersUnleashed Global Leveraged Capital has formed an advisory arm, GLC Advisors & Co., to advise debtors, creditors and stakeholders in distressed companies, the firm said today. GLC Advisors, which is...

Kirkland & Ellis Bulks Up M&A and Restructuring.(News)
June 1, 2009... Byline: Joshua Hamerman, IDD Although it is celebrating its centennial this year, Kirkland & Ellis still has some catching up to do. But it's well on its way. Kirkland recently hired M&A partners David Fox and Daniel Wolf from Skadden,...

Six More Issuers Queue Up on HY Primary.(News)
June 1, 2009... Byline: Carol J. Clouse High yield bond issuers are lining up like kids at a new Disney ride. A steady stream of successful issuance seems to have emboldened companies looking to raise debt. Six issuers have announced a mixture of...

Peltz Eyeing $300 Million For New Debt Fund.(News)
June 1, 2009... Byline: Richard Kellerhals Billionaire Nelson Peltz is looking to raise $300 million for a fund that will invest in corporate debt trading on the secondary market, according to Bloomberg. The fund will be managed by Jay Bloom and Dean...

Banks Ready $675B Quebecor Facility.(News)
June 1, 2009... Byline: Richard Kellerhals Credit Suisse, GE and Wachovia are shopping a $675 million credit facility for Quebecor World, a Quebec-based multinational printing company that entered bankruptcy protection in January 2008. The facility...

Sunrise and Ong Bet on Bonds May 28, 2009 By Carol J. Clouse.(News)
June 1, 2009... John Ong does not believe the leveraged loan market is coming back anytime soon. In fact, he and Sunrise Securities, the boutique investment bank he joined in May, are pretty much betting on it. The leveraged loan market "won't be what it...

The ABL Workout War: Banks vs. Investors.(News)
June 1, 2009... Byline: Richard Kellerhals New battle lines are being drawn in the increasingly conflictive world of bankruptcy workouts-this time between banks, or the traditional asset-backed lenders, and institutional investors. "In terms of...

Market on GM: Now That's What We're Talkin' About.(News)
June 1, 2009... Byline: Richard Kellerhals The leveraged loan market returned from Memorial Day weekend to some good news: The senior secured lenders to General Motors would get a full recovery on their loans to the auto maker. "It may help offset the...

Quicksilver Eyes Amendment to Second Lien.(News)
June 1, 2009... Byline: Richard Kellerhals Fort Worth, Texas-based oil and natural gas producer Quicksilver Resources is seeking an amendment to its $700 million second-lien term loan due 2013. The amendment would allow Quicksilver to take on...

S&P: More Bonds Repaying Loans.(News)
June 1, 2009... Byline: Richard Kellerhals Standard & Poor's LCD has reported that approximately 60% of high yield bonds sold, or approximately $24 billion, have gone to pay down bank debt this year, according to Bloomberg. That is a high in LCD's 13-year...

Virgin, Leap Price Notes; Terex Notes Sold.(News)
June 1, 2009... Byline: Richard Kellerhals Virgin Media and Leap Wireless have priced more than $1.6 billion in notes combined. Meanwhile, Credit Suisse has sold $293 million in 10.875% senior notes due 2016 for Terex Corp. Virgin Media, which...

Three Companies Ready New Bonds.(News)
June 1, 2009... Byline: Richard Kellerhals The high yield bond market continues to behave as though it had one too many Red Bulls. Four companies plan to issue a total of $1 billion in new high yield bonds. Lake Forest, Ill.-based auto parts maker...

Rite Aid Seeking $400 Million Term Loan.(News)
June 1, 2009... Byline: Richard Kellerhals Rite Aid, a Harrisburg, Pa.-based drug store chain operator, is looking to secure a $400 million term loan in order to refinance an existing $145 million term loan and pay down part of a $1.75 billion revolver....

Banks Land Investors For Hexcel Facility.(News)
June 1, 2009... Byline: Richard Kellerhals Bank of America and Deutsche Bank have finished syndication of a $175 million term loan for Stamford, Conn.-based Hexcel. The deal was launched late last week and was shopped at Libor plus 400 bps, with an...

BofA Commits to CareFusion Facility.(News)
June 1, 2009... Byline: Richard Kellerhals Bank of America has committed to fund a $1.9 billion credit facility for CareFusion, a spinoff of Dublin, Ohio-based pharmaceutical distributor Cardinal Health. The facility consists of a $1.4 billion,...

Citi Readies Rite Aid Term Loan.(News)
June 1, 2009... Byline: Richard Kellerhals Citigroup is gearing up to launch a $400 million term loan B for Rite Aid, a Harrisburg, Pa.-based drug store chain operator. Price talk is at Libor plus 650 bps. It didn't take long for Rite Aid to secure...

Four Cos. Line Up to Issue $2B in HY Bonds.(News)
June 1, 2009... Byline: Carol J. Clouse The high yield primary market is heating up again after quieting down around the holiday weekend. Four companies plan to issue nearly $2 billion in bonds through private offerings, with three of them expected to...

Rochdale Starts Fixed Income Group.(News)
June 8, 2009... Byline: Matthew Sheahan Rochdale Securities has launched a fixed income group and may open a New York office for its growing team before the end of the year. The Stamford, Conn.-based firm's fixed income team will be lead by Michael...

Will Europe Embrace its Fallen Angels?(News)
June 8, 2009... Byline: Savita Iyer-Ahrestani In early May, Italian car manufacturer Fiat Group confirmed ongoing rumors that it planned to buy most of General Motors' European operations. At that time, European high yield sources said that the move would...

All Is Not Clear in This Debt Exchange.(News)
June 8, 2009... Byline: Kelly Holman, IDD When Bain Capital and Thomas H. Lee Partners closed their $24 billion acquisition of Clear Channel Communications in July of last year, the transaction could not have looked better. The two highly regarded...

Hawaii Telecom Files Reorganization Plan.(News)
June 8, 2009... Byline: Matthew Sheahan Bankrupt telecom service provider Hawaii Telecom filed a reorganization plan with a U.S. Bankruptcy Court that will covert $940 million in outstanding debt into equity in a reorganized company. The plan cancels...

Imperial Nabs UBS HY Trading Vet.(News)
June 8, 2009... Byline: Matthew Sheahan Imperial Capital has hired UBS veteran Brian Walter as a managing director and senior trader for its institutional sales and trading group, the firm said today. The addition is part of a larger expansion in sales...

Moody's: May Corp Default Rate Hit 9.2%.(News)
June 8, 2009... Byline: Matthew Sheahan The global speculative-grade default rate reached 9.2% last month, according to Moody's Investors Service. The default rate climbed from 8.3% in April and was at 1.9% in May of 2008. The rating agency predicts that...

HY Primary: I'm Back in Black.(News)
June 8, 2009... Byline: Matthew Sheahan The U.S. primary market has come roaring back, for high yield bonds at least. But while market players expect the resurgence in junk bond issuance to last, the leveraged loan primary continues to lag. And new...

RRI Energy Ends Successful Tender Offer.(News)
June 8, 2009... Byline: Matthew Sheahan Houston-based electric power provider RRI Energy ended its tender offer, it announced today. The company successfully repurchased $225 million in 6.75% senior secured notes due 2014 at par. RRI began its tender...

Oil Companies to Issue $800M in New Bonds.(News)
June 8, 2009... Byline: Matthew Sheahan Two petroleum refining companies plan on pricing bonds today for more than $800 million. If the bonds price as planned, the weekly net total for companies would exceed $5.8 billion, according to KDP Investment...

GM Rolls into Bankruptcy.(News)
June 8, 2009... Byline: Kelly Holman, IDD General Motors and three of its domestic subsidiaries filed for Chapter 11 protection today in the U.S. Bankruptcy Court for the Southern District of New York. The 101-year old Detroit automaker listed $82.3...

Two Cos. Issue Bonds to Pay Tenders.(News)
June 8, 2009... Byline: Matthew Sheahan Tenet Healthcare and Interface are looking to price bonds on the high yield primary market today to support their tender offers. The two companies want to issue a total of $850 million, with Tenet increasing the...

Georgia Gulf Extends Tender Deadline Again.(News)
June 8, 2009... Byline: Matthew Sheahan Georgia Gulf has extended the deadline for its tender offer in the face of low bondholder participation. The Atlanta-based chemical and building product provider moved the deadline, which has been extended several...

Former Bear CEO Joins Guggenheim.(News)
June 8, 2009... Byline: Matthew Sheahan Former Bear Stearns CEO Alan Schwartz has joined Guggenheim Partners as its executive chairman, the firm said today. His appointment is part of the firm's effort to expand its financial services and become a...

Four Cos. Hit HY Market with $1.5B.(News)
June 8, 2009... Byline: Matthew Sheahan Four companies are offering up more than $1.5 billion in new high yield bonds today. And as much as $3.845 billion in new bonds could be issued this week, according to KDP Investment Advisors. NRG Energy is...

HSBC Names Duff as Head of Lev Finance.(News)
June 8, 2009... Byline: Editorial Staff HSBC has appointed Oliver Duff as global head of leveraged and acquisition finance, according to an internal document obtained by Bloomberg. Duff, who joined the London-based bank in September 2006, will report...

GE Provides Caraustar with $75M DIP Loan.(News)
June 8, 2009... Byline: Matthew Sheahan GE Capital is supplying a $75 million debtor-in-possession loan to Caraustar Industries, GE said. The loan will provide working capital to the Austell, Ga.-based paperboard manufacturer as it works its way out of...

Cantor Names Head of Fixed Income Rates Strategy.(News)
June 15, 2009... Byline: Matthew Sheahan Cantor Fitzgerald has hired George Goncalves as the head of its fixed income rates strategy, the firm said today. In this new position, he will lead the firm's effort to create a strategy team and develop new fixed...

Theater Company Hopes to Reel in $150M in Bonds.(News)
June 15, 2009... Byline: Matthew Sheahan Movie theater company Hollywood Theaters wants their bond market quest to have a Hollywood ending. The Portland, Ore.-based company plans to price $150 million in senior notes due 2013 today. The parent company,...

Moody's Downgrades Top-Rated CLOs.(News)
June 15, 2009... Byline: Richard Kellerhals Several top-rated CLOs managed by Invesco and Highland Capital Management saw their Aaa tranches downgraded by Moody's Investors Service Tuesday. Moody's downgraded the tranches between one and four notches,...

Barclays Eyes Its Own CLOs at Discount.(News)
June 15, 2009... Byline: Richard Kellerhals Barclays is offering to buy pieces of a CLO it arranged, which is managed by Lambda Finance, at a price as low as 20% of face value, according to Bloomberg. Barclays is offering a minimum of 70% of face value...

Jefferies HY Grows through the Market Pain.(News)(Interview)
June 15, 2009... Byline: Matthew Sheahan Midmarket investment bank Jefferies has continued to grow in the wake of the i-bank shakeup that still reverberates through the financial markets. Robert Harteveldt joined Jefferies last summer after more than...

BTIG Expands Global Fixed Income Group.(News)
June 15, 2009... Byline: Bridget Cass BTIG, a New York-based institutional broker dealer specializing in trading and related brokerage services, has further expanded its global fixed income group with four new hires. The debt group was launched in...

HY to See $300M in Two Issues.(News)
June 15, 2009... Byline: Matthew Sheahan Two companies, Connacher Oil & Gas and Wallace Theater Holding, plan to hit the high yield primary market today with $300 million in new bonds, which would bring total new issuance for the week to more than $2...

Univision Amends Credit Agreement.(News)
June 15, 2009... Byline: Matthew Sheahan Spanish-language broadcaster Univision Communications reached an agreement with a group of bank lenders to amend its senior secured credit agreement, the company announced today. The move comes as the company plans...

RBDA To SEC: End Unfair CUSIP Fees.(News)
June 15, 2009... Byline: Richard Kellerhals The Regional Bond Dealers Association has asked the Securities and Exchange Commission to end what it says are unreasonable fees demanded by the CUSIP Service Bureau for tagging individual bonds and securities...

Haights Cross Offers Stock for Debt.(News)
June 15, 2009... Byline: Matthew Sheahan Haights Cross Communications is looking to restructure its debt through a debt-for-stock transaction, the company said today. The new shares would represent at least 89% of the company's outstanding shares of common...

Distressed Debt Dry Powder Yet to Ignite.(News)
June 15, 2009... Byline: Matthew Sheahan There are signs that investors are gathering more capital for distressed debt investing, yet distressed investment seems to be lagging, even as the primary high yield market booms. Observers note that macroeconomic...

Tenet Healthcare Gets Tender Offer Support.(News)
June 15, 2009... Byline: Matthew Sheahan Tenet Healthcare has more than 89% of outstanding bonds tendered in its cash tender offer to buy up to $1 billion of its outstanding 9.875% senior notes due 2014. The Dallas-based hospital operator said today that...

S&P: More Defaults Bring Yearly Tally to 153.(News)
June 15, 2009... Byline: Matthew Sheahan Eight corporate defaults brought the 2009 year-to-date tally to 153, according to a report released today by Standard & Poor's. Defaults are more than four times the 35 defaults at this point in 2008. Two of...

Loans Continue to Rally.(News)
June 15, 2009... Byline: Richard Kellerhals The leveraged loan market is continuing to heat up. The Standard & Poor's/Loan Syndications and Trading Association U.S. Leveraged Loan 100 index hit another high point for the year on Thursday, with a...

Horizon Lines Amends Facility.(News)
June 15, 2009... Byline: Richard Kellerhals Horizon Lines, a Charlotte, N.C.-based container ship owner, has amended its $375 million credit facility. The company reduced the size of its revolver to $225 million from $250 million and eliminated a...

Sealed Air to Pump Up with $250M in Bonds.(News)
June 15, 2009... Byline: Matthew Sheahan Sealed Air plans to price $250 million in high yield bonds today, which would bring the weekly total to $1.95 billion in new high yield bonds. The company intends to issue $250 million in senior notes due 2017. ...

Rite Aid to Issue $400M in HY Bonds.(News)
June 15, 2009... Byline: Matthew Sheahan Rite Aid is writing itself a prescription for maturing debt by pricing $400 million in new bonds today. The company also plans to close a new $525 million term loan by June 10 and hopes to secure a new $1 billion...

Supreme Court Delays Chrysler Sale.(News)
June 15, 2009... Byline: Matthew Sheahan Justice Ruth Bader Ginsburg temporarily delayed Chrysler's sale to Fiat, according to several reports. Three Indiana pension funds brought the matter to the court after a request to delay the sale was denied by a...

Bondholders Support AMC Tender Offer.(News)
June 15, 2009... Byline: Matthew Sheahan Movie theater operator AMC Entertainment won the support of more than 95% of its bondholders for a tender offer only two weeks after announcing it, the company said today. The support exceeded the amount needed to...

Deutsche Hires Ore Hill Loan Trader.(News)
June 15, 2009... Byline: Richard Kellerhals Deutsche Bank has hired Michael Eilert, a loan trader from New York-based hedge fund Ore Hill Partners, according to Bloomberg. Eilert will be based in New York and will report to Peter Benoist, who heads...

CMS Energy Plans $300M HY Issue.(News)
June 15, 2009... Byline: Matthew Sheahan CMS Energy plans to issue $300 million in high yield bonds and $150 million in convertible senior notes, the company announced Monday. The Jackson, Mich.-based electric and natural gas provider intends to sell...

Manitowoc Amends Credit Agreement June 15, 2009 By Matthew Sheahan.(News)
June 22, 2009... Byline: Matthew Sheahan Construction equipment manufacturer The Manitowoc Co. amended its credit agreement effective today, the company announced. The agreement changes certain financial covenants on the company's $2.63 billion senior...

PaeTec Calls on HY Investors to Buy $350M.(News)
June 22, 2009... Byline: Matthew Sheahan PAETEC Holding is looking to sell $350 million in new bonds to help repay term loan debt. If the notes price as planned, the high yield primary market could see $900 million in new bonds today, bringing this week's...

Lyondell Creditors Seek to Sue Banks.(News)
June 22, 2009... Byline: Richard Kellerhals LyondellBasell's committee of unsecured creditors Tuesday filed court documents in Manhattan, seeking the court's approval to sue lenders and affiliates of billionaire Len Blavatnik over the company's merger,...

Wind Seeks Amendment to Allow HY Bonds.(News)
June 22, 2009... Byline: Matthew Sheahan Italian telecom company Wind is looking to amend its senior and second-lien credit agreements so it can issue new high yield bonds, according to several reports. The Rome-based company is hoping to price...

Mackenzie Launches New HY Bond Fund.(News)
June 22, 2009... Byline: Matthew Sheahan Canadian firm Mackenzie Investments launched a new high yield corporate bond fund, the firm said today. The fund will likely make about half of its investments outside of Canada. The new fund, Sentinel North...

Quicksilver to Tap HY Market for $425M.(News)
June 22, 2009... Byline: Matthew Sheahan Oil and natural gas exploration and production company Quicksilver Resources plans to tap the high yield primary market for $425 million today. The Fort Worth, Texas-based company intends to price $425 million...

Morgan Nabs Bignham Lev Finance Lawyers.(News)
June 22, 2009... Byline: Richard Kellerhals Morgan Lewis, a Boston-based law firm, has snagged five partners and six associates from Bingham McCutchen's banking and leveraged finance group, including a former co-chair of the practice. The five new...

Companies Seeking Debt Relief Hit HY Market.(News)
June 22, 2009... Byline: Matthew Sheahan The high yield primary market could see more than $2.47 billion in new bonds this week, as companies look to reduce their existing debt. One company is expected to price bonds today, and at least two more will...

Movie Theaters Are HY Blockbusters.(News)
June 22, 2009... Byline: Matthew Sheahan It's not movie magic, but movie theater companies could not have scripted their most recent act on the high yield loan and bond markets better. While other companies that rely on consumer spending have seen their...

Six Flags Seeks DIP to Keep the Ride Going.(News)
June 22, 2009... Byline: Richard Kellerhals Theme park operator Six Flags, which filed for bankruptcy protection on July 13, is looking to obtain a debtor-in-possession loan to help fund its operations. The company has been working with JPMorgan to...

Loan Market Is Summer's New Roller Coaster.(News)
June 22, 2009... Byline: Richard Kellerhals Managing a loan portfolio these days may feel like a roller coaster ride with no seatbelt. In the past six weeks, the car has been inching up the incline, along with secondary loan prices and the number of...

Wendy's, Quicksilver Price More Than $1B in New Notes.(News)
June 22, 2009... Byline: Matthew Sheahan Wendy's/Arby's Group and Quicksilver Resources priced new bonds for $1.165 billion Thursday. Both companies sold larger bond offerings than initially planned. The two deals brought the weekly high yield new issue...

With Few Takers, NXP Extends Early Tender Deadline.(News)
June 22, 2009... Byline: Matthew Sheahan Dutch semiconductor provider NXP Semiconductors extended the early deadline for its tender offer and reported its progress so far on Thursday. Few bondholders have shown interest in the offer, which the company...

Graphic Packaging Tender Offer a Hit.(News)
June 22, 2009... Byline: Matthew Sheahan Holders of Graphic Packaging's 8.5% senior notes due 2011 have embraced the company's tender offer. More than 93% of the outstanding notes were tendered by the early deadline of June 12, the company announced...

Georgia Gulf Extends Exchange.(News)
June 22, 2009... Byline: Matthew Sheahan Georgia Gulf has once again extended a tender offer for three tranches of outstanding bonds, though the company has so far received a tepid response from bondholders. The move came after bondholders again cut the...

Three Cos. Hit HY Market with $1.5B.(News)
June 22, 2009... Byline: Matthew Sheahan Cinemark, Limited Brands and Wendy's/Arby's Group plan to issue a total of $1.52 billion in high yield bonds today. As much as $3.63 billion in new speculative-grade corporate bonds could price before the end of the...

Six Flags Leaves Bondholders Queasy.(News)
June 22, 2009... Byline: Richard Kellerhals Theme park operator Six Flags has proposed a restructuring plan that might leave its unsecured bondholders feeling like they just stepped off a ride on the Zipper. The company filed for Chapter 11 bankruptcy...

CGS Punches Back Over CUSIP Fees.(News)
June 22, 2009... Byline: Richard Kellerhals CUSIP Global Services has fired back at the Regional Bond Dealers Association, which last week asked the Securities and Exchange Commission to force CGS to stop charging what it says are unreasonable fees for...

Buckeye Seeks Consent for Early Tender.(News)
June 22, 2009... Byline: Matthew Sheahan Buckeye Technologies today began asking holders of its 2013 bonds for permission to get a head start on a tender offer for its 2010 bonds, the company said today. The company said it was confident that the...

Oil Co. to Sell $300 Million in New Notes.(News)
June 29, 2009... Byline: Richard Kellerhals Magellan Midstream Partners, a Tulsa, Okla.-based oil and gas company, plans to sell $300 million in senior unsecured notes due 2018. Magellan, like many companies these days, plans to use the proceeds to pay...

UBS Names Head of Asia Pacific Fixed Income.(News)
June 29, 2009... Byline: Matthew Sheahan UBS Global Asset Management appointed Anne Anderson as Head of Fixed Income, Asia Pacific, the Swiss banking giant announced today. She is currently Head of Fixed Income for Australia. Anderson has been the head...

Oxford, Alliance One Look for HY Support.(News)
June 29, 2009... Byline: Matthew Sheahan Alliance One International and Oxford Industries are throwing their hats into the ring to raise funds from the high yield bond market to help reduce debt. The two companies are looking for a total of $850 million...

Church's Chicken Nets $150 Million From Lenders.(News)
June 29, 2009... Byline: Richard Kellerhals San Antonio-based fast food chain operator Church's Chicken has received a $150 million credit facility from its existing lenders. Church's agreed to pay the lenders-Bank of America, Golub Capital and Wells...

Former Citi Execs Form StormHarbour.(News)(Company overview)
June 29, 2009... Byline: Richard Kellerhals Several former Citigroup executives, including a former managing director in Citi's European leveraged finance sales team, have formed StormHarbour Partners, a financial services firm that will focus on the...

NXP Draws $300M from Credit Facility.(News)
June 29, 2009... Byline: Matthew Sheahan NXP Semiconductors drew down $300 million from its revolving credit facility, it announced today. The Dutch semiconductor provider is still working on a tender offer that has so far proven unsuccessful. The...

Four Issuers to Price up to $1.35B in HY.(News)
June 29, 2009... Byline: Matthew Sheahan Four companies may price $1.35 billion in high yield bonds on the primary market today. The deals would bring the weekly total to $1.5 billion if priced as planned. Spanish language broadcaster Univision plans...

Survey Cites Debt Slowdown.(News)
June 29, 2009... Byline: Avram Davis, MergersUnleashed There has been little movement in debt markets, according to a study by Gotham Consulting Partners, as 35% of private equity respondents said credit is not available at all. The consulting firm's...

SIFMA: Economists See Low Inflation Risk.(News)
June 29, 2009... Byline: Patrick Temple-West, The Bond Buyer Economists surveyed by the Securities Industry and Financial Markets Association do not see any risk of inflation indicators over the next 18 months, as unemployment rises and eases pressure on...