High Yield Report articles from March 2008

High Yield Report archives from March 2008

February Sees Surge Of High Yield Damsels In Distress.(trends in distress debt market)
March 3, 2008... The new year so far has brought more cuts in interest rates, a new Super Bowl champion and a new slate of Oscar winners. It has also seen a rapid expansion of the distressed debt universe. More issues have found themselves locked in the tower...

A Little Forethought Never Hurts.(trends in economic development and services of financial industry)
March 3, 2008... I've heard it said that when news from the financial world hits the mainstream press, prompting I-bankers' mother-in-laws to start inquiring about the questionable assets used to back collateralized debt obligations, that it's a clear sign the...

Credit Suisse Could Jump Pricing Gun, Again.
March 3, 2008... Credit Suisse could pull another "Harrah's Entertainment" and break ranks from its underwriting syndicate to sell its share of the buyout debt for radio operator Clear Channel Communications, sources said. The bank has reportedly called in...

New SEC Rules May Help Leveraged Finance.
March 3, 2008... Changes in securities regulations enacted by the Securities and Exchange Commission have made it easier for smaller companies to access the debt markets. But whether companies will be flocking to the credit markets and finding interested...

Economic News Still Bodes Ill For HY.
March 3, 2008... Existing home sales fell for the sixth straight month in January, according to a report issued by the National Association of Realtors last Monday. Sales of existing homes fell by 12.7% in 2007, the biggest decline in 25 years. Sales of...

Renegade Wachovia Risks Private Equity Ire.
March 3, 2008... The business of leveraged finance conducted between Wall Street banks and financial sponsors is shaping up to be the legal equivalent of a 19th century bare-knuckle match. As an example of just how rough dealings have become, Wachovia Bank...

Debt Markets Are But One Obstacle for Covad.
March 10, 2008... Platinum Equity is close to finally closing its deal to buy Covad Communications Group. However, Covad is not well positioned to access the debt markets, sources say. And Platinum is staying mum on its financing strategy. Covad provides...

Can Your Stomach Stand A Little Good News?
March 10, 2008... I'm wondering if good news for the debt markets might create a reaction akin to what apparently happens when a vegetarian decides she's had it with broccoli and wolfs down a T-bone steak. From what I understand, what follows can be ugly....

European Debt: Distressed Or Not Distressed?
March 10, 2008... After a couple of years with a mere sprinkling of bankruptcies in Europe, the economic tide has turned, and most distressed investors believe that 2008 will be their year, according to a recent survey of the European distressed debt market. But...

Finish Line, UBS Pay Genesco To Escape Deal.
March 10, 2008... Among the broken LBO deals that have resulted in issues being pulled from the debt markets, TheFinish Line's acquisition of Genesco was one that might have been forced through by the courts. A settlement last week put an end to the dispute over...

Macrovision Set To Launch $650 Million Debt Package.
March 10, 2008... Santa Clara, Calif.-based Macrovision plans to launch a $650 million debt offering to fund its purchase of television listings provider Gemstar-TV Guide International. While the facility could be tweaked depending on market reception, the...

RBC Adds European Leveraged Finance Group.
March 10, 2008... Never mind the debt market doldrums: The Royal Bank of Canada is making a bold stand and hanging out a shingle for a European leveraged finance shop in London, according to reports. The company will use its existing North American leveraged...

Investors Still DrivingUnder Caution Flag.
March 10, 2008... The high yield secondary market kept to its regular routine last week. More bad economic news sent more investors to Treasurys, while companies lost more than they gained in secondary trading. Last week began with the world's richest man,...

Boon For JPMorgan Is Disaster For Bear Stearns.
March 24, 2008... Among the thousands of Bear Stearns employees expected to be laid off following the bank's takeover by JPMorgan Chase are a large number from its leveraged finance division. And while the acquisition will add to JPMorgan's dominance of...

No More Dead Air With Clear Channel, Providence.
March 24, 2008... After some legal wrangling with its bank and sponsor, Clear Channel Communications has paved a way to continue with its selloff of 56 TV stations for $1.1 billion to private equity group Providence Equity Partners.And a bank group led by...

Nobody Promised Fair, But This Is Ridiculous.
March 24, 2008... At least once during our teenage years there comes a moment when life deals us what we perceive to be a horrible injustice, and in response to our cries of, "It's not fair!" many of us likely got the unsatisfying parental response: "Who ever...

Euro HY Converts Tempt Some Investors.
March 24, 2008... While Europe's traditional high yield bond space hasn't seen a deal since last summer, its convertible counterpart is actually the seat of much action. Chinese real estate company Country Garden issued $500 million in convertible bonds...

Wachovia Lev Finance Chief Departs.
March 24, 2008... A co-head of Wachovia's leveraged-finance group has left the company. Elton Vogel joined Wachovia in 2004 and worked alongside Eric Lloyd. Vogel reportedly said he chose to leave the company to spend more time with family. He also said he plans...

Thacher Proffitt Taps Into Distressed.
March 24, 2008... With JPMorgan scooping up 85-year-old Bear Stearns last week for $2 per share, it is safe to say that deteriorating credit conditions and market jitters continue to hack away at the U.S. economy. Taking advantage of the current situation is...

Fed Action Brings A Bit Of Calm To HY.
March 24, 2008... By helping Bear Stearns avoid bankruptcy and then cutting interest rates again, the Federal Reserve provided a brief period of calm last week for the high yield market. And while the Fed made no boasts that a long-term solution was on its way,...

Bridge Loans Launch Over Troubled Waters.
March 31, 2008... With current market conditions driving up the price of debt, more and more issuers are turning to bridge loans as a source of cheap financing. And their need, in turn, has created opportunities for debt investors seeking quick returns. ...

Newport Shines, Clear Channel Heads To Court.
March 31, 2008... The future of the buyout deal for Clear Channel Communications, from the perspective of institutional investors, has been anything but clear over the past few months. Last week, as the megadeal faltered, Wachovia marketed a $515 million term...

I-Banks Not Quite Springing Forward.
March 31, 2008... If life on Wall Street were produced in Hollywood, right about now would come the trite "passage of time" sequence-the flipping of calendar pages on an abandoned desk, possibly, or a view of Battery Park from a downtown window, the seasons...

Analysts Predict More Bad News For The Street.
March 31, 2008... Global debtholders will eventually have to slash $1.2 trillion off their books from credit losses before the credit maelstrom ceases, according to a Goldman Sachs research note released last week, and Wall Street will get hit in the gut with...

Economic News Gives HY A Winning Week.
March 31, 2008... Recently elusive good economic news returned last week, creating bigger gainers than losers on the high yield secondary market and giving hope to some that a recession could be avoided or at least softened. The week began with the news that...

All Eyes On Default RatesAs Spreads Return From 800.
March 31, 2008... If video games were marked "half off" at your local electronics store, you would likely see a stampede of eager buyers clamoring for the chance to spend their money on the latest game, but when the high yield bond spread recently widened beyond...

Abitibi Gets $813M Helping Hand.
March 31, 2008... There was a spark of life in the primary high yield bond and leveraged loan markets last week, and leading the way with a tranche in each market was a refinancing deal from an unlikely hero, beleaguered paper and pulp company AbitibiBowater....