High Yield Report articles from May 2009

High Yield Report archives from May 2009

Jarden Prices $300M In Senior Notes.(News)
May 4, 2009... Byline: Matthew Sheahan Jarden Corp. priced $300 million in 8% senior notes due 2016 Monday. The notes priced with an OID of 97.40 to yield 8.5%, in line with price talk. The Rye, N.Y.-based consumer products company initially planned...

Broder Bros. Sweetens Exchange Offer.(News)
May 4, 2009... Byline: Matthew Sheahan Clothing provider Broder Bros. amended some of the terms of its exchange offer, sweetening the deal for bondholders, it said Tuesday. The company is also allowing retail investors to participate in the exchange...

Three Companies Amend Credit Facilities.(News)
May 4, 2009... Byline: Richard Kellerhals Three companies-Kelly Services, Starwood Hotels and Resorts, and Alon USA Energy-have amended their credit facilities in the last couple of days. Kelly Services, a Troy, Mich.-based provider of temporary...

HRPT Nets $250M Credit Facility.(News)
May 4, 2009... Byline: Richard Kellerhals HRPT Properties Trust, a Newton, Mass.-based real estate investment trust, has received a $250 million senior secured credit facility from a bank consortium. Bank of America acted as the administrative agent,...

Ingles Markets Shops $500M HY Deal.(News)
May 4, 2009... Byline: Matthew Sheahan Ingles Markets hopes to fill its cart with $500 million through a high yield bond issue, it said Tuesday. The Asheville, N.C.-based supermarket operator, which plans to use the proceeds to refinance debt, is making...

Chrysler To File For Chapter 11.(News)
May 4, 2009... Byline: Matthew Sheahan Big Three auto maker Chrysler will file for Chapter 11 bankruptcy protection, according to an unnamed White House official cited in several reports. The move comes after the Obama administration tried to broker a...

Four Companies Queue Up on HY Primary.(News)
May 4, 2009... Three companies plan to price bonds on the high yield primary market today for a total of at least $1.3 billion. Another company is on the forward high yield calendar with a $500 million offering but so far is not expected to issue today. ...

Auto Parts Cos Seek Lender Approval For Aid.(News)
May 4, 2009... Byline: Richard Kellerhals Two auto parts makers are seeking approval from their lenders to participate in the Auto Supplier Support Program-a U.S. Treasury financing plan that provides up to $5 billion to auto suppliers, according to...

Source Interlink Files and Arranges $400M Exit.(News)
May 4, 2009... Byline: Richard Kellerhals Source Interlink, a Bonita Springs, Fla.-based magazine, CD and DVD distributor, has filed prepackaged Chapter 11 and arranged a $400 million exit loan with Citigroup and JPMorgan. The restructuring wipes out...

Rosetta Secures $25M TL, Amends Facility.(News)
May 4, 2009... Byline: Richard Kellerhals Rosetta Resources, a Houston-based oil and gas company has secured a $25 million term loan from a group of lenders. The $25 million is an add on to an existing $75 million loan. Rosetta had to pay lenders a...

Secondary: I Can Drive 85.(News)
May 4, 2009... Byline: Richard Kellerhals Like the weather outside, the secondary leveraged loan market has warmed up. Prices have been climbing, and some say Markit's LCDX index, a secondary market barometer, will hit 85 by the end of the quarter. ...

MGM Mirage Amends Credit Facility.(News)
May 4, 2009... Byline: Richard Kellerhals On April 30, casino operator MGM Mirage amended its senior secured credit facility, allowing the company more time to restructure its debt and to obtain a $224 million letter of credit so that it can complete the...

Four Companies Issue $2.3B In HY Bonds.(News)
May 4, 2009... Byline: Matthew Sheahan Four companies priced more than $2.3 billion in new high yield bonds Thursday, bringing April's new issue total to $9.8 billion. A company priced at the $1 billion mark for the third time this year. ...

Energy Partners Files For Chapter 11.(News)
May 4, 2009... Byline: Matthew Sheahan Energy Partners has filed for Chapter 11 bankruptcy protection after reaching an agreement with its bondholders, the company announced today. The New Orleans-based oil and natural gas provider agreed to provide...

GM Bondholders Make Counteroffer.(News)
May 4, 2009... Byline: Richard Kellerhals General Motors' bondholders Thursday presented the company with a counteroffer, which, if approved by GM, would give bondholders a 58% in the company. The bondholders were unhappy with GM's offer to them on...

Hedge Fund Giant Citadel Launches I-Bank.(News)
May 4, 2009... Byline: Gerelyn Terzo Citadel Securities, a division of Citadel Group, which manages $11.5 billion in hedge fund assets, is launching an investment bank. Todd Kaplan, tapped by Citadel in March from Merrill Lynch to oversee its capital...

Goldman Eyes $1.5B For Distressed Assets.(News)
May 4, 2009... Byline: Richard Kellerhals Goldman Sachs Asset Management is looking to commit as much as $1.5 billion to distressed investments, one third of which would be used to boost the firm's exposure to leveraged loans, according to Reuters. ...

Jarden Plans $250M Bond Issue.(News)
May 4, 2009... Byline: Matthew Sheahan Jarden Corp. plans to price $250 million in senior notes due 2016 to help repay a portion of its senior term loans, the Rye, N.Y.-based company said today. The company will likely issue the new bonds today,...

GM Unveils Mammoth $27B Exchange Offer.(News)
May 4, 2009... Byline: Aleksandrs Rozens, IDD General Motors, which has teetered on the brink of bankruptcy amid a dramatic decline in auto sales and rising costs, announced a massive exchange offer today that trades $27 billion worth of debt for equity....

GM Bondholders Unhappy With Exchange Offer.(News)
May 4, 2009... Byline: Richard Kellerhals General Motors bondholders said today that they are unhappy with the company's latest restructuring plan, which includes a proposal to trade $27 billion worth of debt for equity. "We believe the offer to be a...

GE Sets Price Talk On Motor Coach Exit Facility.(News)
May 4, 2009... Byline: Richard Kellerhals GE has established price talk on a $230 million exit facility for Motor Coach Industries, a Schaumburg, Ill.-based bus manufacturer. The facility, which will help Motor Coach exit bankruptcy, consists of a...

Georgia Gulf Extends Early Tender Deadline.(News)
May 4, 2009... Byline: Matthew Sheahan Georgia Gulf has extended the deadline on its exchange offer to May 7 from April 27, the Atlanta-based chemical and building product provider said Monday. Georgia Gulf is offering $250 million in 15% senior...

Berry Petroleum Secures $140M Second Lien.(News)
May 4, 2009... Byline: Richard Kellerhals Berry Petroleum, a Denver.-based oil and gas production company, has secured a $140 million second-lien term loan from Wells Fargo. Price talk on the second lien is at Libor plus 800 bps, with a 3% Libor...

GoldenTree Adds HY Portfolio Manager.(News)
May 11, 2009... Byline: Matthew Sheahan GoldenTree Asset Management hired Tom Hajdukiewicz as a portfolio manager, the New York-based firm announced today. He reports to Steve Tananbaum, GoldenTree's chief investment officer and CEO. Hajdukiewicz was...

Emerging Market Debt Outperforms U.S. HY.(News)
May 11, 2009... Byline: Matthew Sheahan Emerging market debt has outperformed U.S. high yield bonds, equities and most other asset classes, according to a review conducted by Standish Mellon Asset Management Co., the fixed income unit of BNY Mellon Asset...

Chrysler's $4.5 Billion DIP Loan Approved.(News)
May 11, 2009... Byline: Aleksandrs Rozens, IDD A New York bankruptcy judge on Monday approved a unique $4.5 billion debtor-in-possession, or DIP, loan from the U.S. government and Canada for fallen auto giant Chrysler. Proceeds of the loan will be...

Level 3 Adds $60M To TLB.(News)
May 11, 2009... Byline: Richard Kellerhals Level 3 Communications, a Broomfield, Colo.-based technology company, has added $60 million to its $220 million term loan B. Level 3 secured the $220 million loan last month from Bank of America (LFN, April...

North Sea Nabs ML MD in Europe.(News)
May 11, 2009... Byline: Carol J. Clouse North Sea Partners, a new leveraged finance advisory, has hired Malcolm J. Stewart as a managing partner for Europe, the firm said today. Stewart will be based in London and work with New York-based managing...

Vista Equity Partners Ups SumTotal Bid.(News)
May 11, 2009... Byline: Jonathan Marino Less than two weeks after KKR topped Vista Equity Partners' offer for SumTotal Systems, the bidder beat by $20 million the PE titan's offer, volunteering $146 million ($4.50 per share) for its target. SumTotal...

Big Pharma's Mid-Market Influence.(News)
May 11, 2009... Byline: Jonathan Marino , MergersUnleashed Perhaps the most notable cure to come out of big pharma during the past few months was the sector's affect on M&A, as three giant mergers, worth a combined $156 billion, seemed to kickstart the...

Three Cos. Price More Than $5B In HY Bonds.(News)
May 11, 2009... Byline: Matthew Sheahan It was a festive Cinco de Mayo on the high yield bond market, and not because issuers were celebrating the Mexicans' defeat of French forces at the Battle of Puebla in 1862. Three companies priced issues totaling...

Libor Falls Below 1% For The First Time.(News)
May 11, 2009... Byline: Richard Kellerhals The three-month London interbank offered rate, predominately known as Libor, has fallen below 1% for the first time since its 1984 creation. On Tuesday, Libor declined two basis points to 0.99%. The previous...

Gannett Ends Exchange Offer.(News)
May 11, 2009... Byline: Matthew Sheahan The exchange offer for bonds of newspaper publisher Gannett failed to win widespread support among bondholders. The offer expired Tuesday. Only 8.79% of holders of the 5.75% bonds and 38.6% of holders of the...

GSC Group Defaults On Bank Loan.(News)
May 11, 2009... Byline: Richard Kellerhals GSC Group, a Florham Park, N.J.-based investment shop overseeing more than $18 billion in assets, has defaulted on its bank loan, according to Moody's Investors Service. GSC missed a scheduled payment on its...

Corporate Defaults Hit Seven-Year High.(News)
May 11, 2009... Byline: Matthew Sheahan April's 40 global corporate defaults was the highest number of monthly speculative-grade corporate defaults since March of 2002, when 47 companies defaulted, according to a report released today by Standard &...

RBS Nabs Deutsche Vet for HY Sales.(News)
May 11, 2009... Byline: Matthew Sheahan RBS has tapped Deutsche Bank vet Wight Martindale to serve as head of high yield and distressed debt sales within its global banking and markets group. Martindale, who will begin his tenure with RBS in July, was...

Banks Shop $500M Loan For Discovery.(News)
May 11, 2009... Byline: Richard Kellerhals JPMorgan and Bank of America have begun marketing a $500 million term loan for Discovery Communications, according to Bloomberg. The bank meeting was scheduled to take place Wednesday. Price talk on the term...

Bondholders Push Back On Exchanges.(News)
May 11, 2009... Byline: Matthew Sheahan Unlike the kind you get at the barbershop, which tend to vary in quality, haircuts in the financial world never leave an investor looking good. Bondholders now face big losses through exchange offers being proposed...

Two Cos. Price $1.5B, Two More Seek $500M.(News)
May 11, 2009... Byline: Matthew Sheahan Two companies issued $1.5 billion in high yield bonds Wednesday, and two more plan to price a combined $500 million today. If those offerings go as planned, new issues would total more than $7 billion for the week....

Broder Bros. Amends Tender Offer.(News)
May 11, 2009... Byline: Matthew Sheahan Clothing provider Broder Bros. amended additional terms on its exchange offer, reducing the minimum required tender to $213.75 million in principal amount of existing notes from $220.5 million. So far the company...

Jones Apparel Extends Tender Deadline.(News)
May 11, 2009... Byline: Matthew Sheahan New York clothing supplier Jones Apparel again extended the deadline on its offer to tender 4.25% senior notes due 2009, this time to May 11 from May 6. Bondholders representing $242.5 million, or approximately 97%...

Loomis Sayles Sells All Its GM Bonds.(News)
May 11, 2009... Byline: Richard Kellerhals Loomis Sayles has sold all of its General Motors bonds and left the ad hoc committee representing of bondholders, according to Bloomberg. The investment manager told GM that its offer to exchange $27 billion...

Market: Don't Stress Over Stress Tests.(News)
May 11, 2009... Byline: Richard Kellerhals Market participants say the leverage finance markets shouldn't stress about the government's stress tests. Though some say you shouldn't put away the medication just yet. Some market participants fret that...

Nalco Deal Trades in the Upper 90s.(News)
May 11, 2009... Byline: Richard Kellerhals The loan market continued to show signs of a thaw this week as a bank consortium syndicated a $750 million term loan B for Nalco, a Naperville, Ill.-based producer of chemicals used to treat water. The deal...

Entravision Amends Term Loan.(News)
May 11, 2009... Byline: Richard Kellerhals Entravision Communications, a Santa Monica, Calif.-based media company, has amended its $150 million term loan, reducing the size of the loan to $50 million. In order to slash more than half of its debt off...

Coinstar Secures TL From BofA.(News)
May 11, 2009... Byline: Richard Kellerhals Bellevue, Wash.-based Coinstar, which helps turn loose change into greenbacks with their coin-collecting kiosks, has obtained a $62 million term loan from Bank of America. Price talk on the term loan is at...

AMG: HY Funds See Eight Straight Weeks Of Inflow.(News)
May 11, 2009... Byline: Richard Kellerhals High yield bond mutual funds have had the eighth straight week of inflows, according to AMG Data Services. These funds took in approximately $778 million for the week ended May 6 and $328 million of inflows...

Georgia Gulf Extends Exchange Deadline.(News)
May 11, 2009... Byline: Matthew Sheahan Atlanta-based chemical and building product provider Georgia Gulf has extended the deadline on its exchange offer to May 14 from May 7, the company announced Thursday. The deadline had previously been extended to...

Ares Looking to Buy CLO Assets.(News)
May 11, 2009... Byline: Richard Kellerhals Ares Management, a Los Angeles based investment manager, is looking to acquire 22 pieces of CLOs worth as much as $767 million. Ares is trying to take advantage of a 90% decline in value on some of the CLOs....

Inverness, Owens Price $1B in Bonds.(News)
May 11, 2009... Byline: Matthew Sheahan Two companies priced $1 billion in new high yield bonds Thursday, bringing the weekly total to $7.57 billion. Both companies increased the size of their issues from their originally announced plans. Waltham,...

Ameristar Plans $500M HY Issue.(News)
May 11, 2009... Byline: Matthew Sheahan Las Vegas casino operator Ameristar Casinos plans to price $500 million in senior unsecured notes due 2014, the company said today. The company plans to use the proceeds to repay and retire a part of its revolving...

Gannett Amends Exchange Offer.(News)
May 11, 2009... Byline: Matthew Sheahan Newspaper publisher Gannett extended the deadline and amended the terms of a bond exchange offer, the company said today. The tender offer will now expire at 5 p.m. Tuesday, EST time, and the minimum tender...

Two Issuers to Price $320M in HY Bonds.(News)
May 11, 2009... Byline: Matthew Sheahan Two health care companies plan to issue a total $320 million in high yield bonds this week. One offering could price as early as today. Psychiatric Solutions, or PSI, plans to sell $120 million to institutional...

Knight Libertas Adds UBS Fixed Income Execs.(News)
May 11, 2009... Byline: Matthew Sheahan Knight Capital Group subsidiary Knight Libertas has added a group of UBS veterans to its emerging markets fixed income group, the firm announced today. It named Daniel Mullineaux as global head of emerging markets...

Banks Set Price Talk on Source Interlink DIP.(News)
May 11, 2009... Byline: Richard Kellerhals Citigroup and JPMorgan have established price talk on a $385 million debtor-in-possession loan for Source Interlink, a Bonita Springs, Fla.-based magazine, CD and DVD distributor. The DIP is split into two...

Five Cos. Could Bring $3.5B to HY Market.(News)
May 11, 2009... Byline: Matthew Sheahan Five more companies have lined up to issue bonds on the high yield primary market, which could bring this week's total deal volume to more than $3.5 billion. Two companies are expected to price offerings today worth...

Three More Companies Hit HY Bond Market.(News)
May 18, 2009... Byline: Matthew Sheahan Three more companies are planning to issue high yield bonds this week, meaning the high yield primary market could see more than $2 billion in new corporate bonds before Friday. Range Resources plans to price...

New Mexico Governor Backs Pension Reviews.(News)
May 18, 2009... Byline: Editorial Staff New Mexico Governor Bill Richardson has announced his support for a proposal that would result in an independent audit of the state's retirement systems. The recently revealed kickback scheme involving the New...

Judge Rules Huntsman Can Sue Creditors.(News)
May 18, 2009... Byline: Jonathan Marino, MergersUnleashed Huntsman Corp., the Texas-based chemicals company, can now pursue damages against the would-be creditors it blamed for the failure of its attempted 2008 merger with Apollo Management's Hexion...

Broadpoint Adds Two To Debt Team.(News)
May 18, 2009... Byline: Richard Kellerhals Broadpoint Capital has hired Matthew Swope and Bradley Bennett as fixed income analysts in the firm's debt capital markets division. Bennett joins Broadpoint from Goldman Sachs, where he was a vice president...

MGM to Tap HY Market for $1.5B.(News)
May 18, 2009... Byline: Matthew Sheahan MGM Mirage plans to price $1.5 billion in high yield bonds today as part of its larger refinancing effort. And two more companies are expected to issue junk bonds next week. The Las Vegas-based casino operator...

Graham Packaging Looks to Extend Maturities.(News)
May 18, 2009... Byline: Matthew Sheahan Graham Packaging plans to ask its lenders for a credit agreement amendment that would extend the maturities on a term loan and revolver, the York, Pa.-based packaging company said today. The proposed amendment...

Will Chrysler Make Lenders Think Twice?(News)
May 18, 2009... Byline: Richard Kellerhals When the government bended a few well-established rules protecting Chrysler's lenders, market participants began to wonder if government involvement in restructuring the auto industry might put the breaks on...

Harrah's Pays Banks In Bonds Instead of Cash.(News)
May 18, 2009... Byline: Richard Kellerhals Last month, when troubled Las Vegas-based Casino operator Harrah's Entertainment exchanged $5.5 billion in debt for $3.4 billion in new 10% notes due 2018, the banks that helped arrange the deal, JPMorgan and...

Pricing Update: APA Group.(News)
May 18, 2009... Byline: Grant Catton RBS Greenwich Capital priced a $140 million private placement for Australia-based natural gas pipeline company APA Group (APA) today, sources confirmed. The NAIC-2 deal priced in seven- and 10-year tranches at 575...

Five More Cos. Join HY Rally.(News)
May 18, 2009... Byline: Matthew Sheahan Five more companies have jumped into the queue to issue high yield bonds either this week or next. So far, more than $4.5 billion in new bonds have hit the market this week, and the total could reach close to $5...

R.H. Donnelley Seeks Deal, May Default.(News)
May 18, 2009... Byline: Matthew Sheahan R.H. Donnelley is still seeking a debt restructuring deal with lenders, but it may default on a bond agreement Friday when a 30-day grace period expires. The company is in continuing discussions with an ad hoc...

Creditors Grant Forbearances to Georgia Gulf.(News)
May 18, 2009... Byline: Matthew Sheahan Bondholders have given Georgia Gulf until June 15 to make payments or close an exchange offer on bonds that had $34.5 million in interest payments due April 15, the company said Wednesday. The Atlanta-based...

General Growth Ruling Could Hurt CMBS.(News)
May 18, 2009... Byline: Matthew Sheahan General Growth Properties, which about a month ago filed the largest real estate bankruptcy in U.S. history, has seen conflict and drama worthy of The Jerry Springer Show, which is also based in Chicago. The latest...

Sanders Morris Harris Secures $25M TL.(News)
May 18, 2009... Byline: Richard Kellerhals Houston-based Sanders Morris Harris Group has secured a $25 million term loan from Prosperity Bank, a St. Augustine, Fla.-based regional bank, and has cancelled a $5 million credit facility with JPMorgan,...

Two Companies to Tap HY Market for $600M.(News)
May 18, 2009... Byline: Matthew Sheahan Two companies are looking to tap into the bustling high yield primary market for a total of $600 million today. If successful, the two corporate issuers would push this week's primary high yield bond total to more...

CMBS Group Voices Relief, Concern on GGP Ruling.(News)
May 18, 2009... Byline: Matthew Sheahan The Commercial Mortgage Securities Association reacted with muted optimism in the wake of a bankruptcy court ruling regarding shopping mall operator General Growth Properties. The ruling assuaged some CMBS...

Banks Shop Alliance Data Term Loan.(News)
May 18, 2009... Byline: Richard Kellerhals Barclays and JPMorgan are marketing a $125 million term loan for Dallas-based Alliance Data. Price talk is at Libor plus 300 bps. The term loan has a pricing feature that ups the spread to Libor plus 350 if...

William Lyon Extends Tender Offer.(News)
May 18, 2009... Byline: Matthew Sheahan William Lyon Homes extended its tender offer for three tranches of senior notes, it said today. The company is trying to reduce its high yield bond debt to $40 million from more than $465 million, but so far only 2%...

Blockbuster Nets Amendment.(News)
May 18, 2009... Byline: Richard Kellerhals Dallas-based Blockbuster has received an amendment on its credit facility, which extends its maturity date and cuts the facility to $640 million from $900 million. The company has seen its shares drop more...

Oil and Gas Cos. Tap HY Market for $665M.(News)
May 18, 2009... Byline: Matthew Sheahan As two oil and gas companies priced more than $665 million in high yield bonds Monday, more energy companies arrived on the forward high yield calendar, possibly bringing the weekly new issue total to more than $2...

Two Cos. File Chapter 11, Net DIPs.(News)
May 18, 2009... Byline: Richard Kellerhals Stock Building Supply and Norwood Promotional Products Holdings have filed for bankruptcy protection and obtained debtor-in-possession loans. Raleigh, N.C.-based Stock Building Supply received a $100 million...

Developers Diversified Secures $60M TL.(News)
May 18, 2009... Byline: Richard Kellerhals Developers Diversified Realty, a Beachwood, Ohio-based manager and developer of shopping centers, has secured a $60 million term loan. Price talk is at Libor plus 1,000 bps. The company didn't name the firm...