High Yield Report articles from November 2006

High Yield Report archives from November 2006

DEALS: Market Gobbles Up Another Mega Deal.(Idearc )(Brief article)
November 6, 2006... Idearc, a spin-off of Verizon's print and Internet yellow pages directories, priced $2.85 billion in 10-year senior unsecured notes Wednesday - another testament to the market's apparently insatiable appetite for paper. The deal, which...

Bankruptcy: DURA Auto's Break Down.(Dura Automotive Systems Inc.)
November 6, 2006... An inability to pay its bondholders apparently led to the timing of DURA Automotive Systems's Chapter 11 filing Oct. 30, and it is likely that the company's bondholders and possibly other secured debt lenders won't be seeing payment anytime...

Feature: A New Order For Junk: Part 2.(junk bonds)
November 6, 2006... Second of a two-part series Many traditional investment banks still run separate high yield bond and leveraged loan operations. However a growing number of leveraged finance officials believe this structure is growing antiquated. ...

Market Buzz: Dreyfus Expands Its High Yield Strategies Fund.(David Bowser appointed)(Barclays Capital appoints Santino Basile, Bill Cassidy, Harry Martin)
November 6, 2006... Dreyfus, the mutual fund subsidiary of Mellon Financial, named two portfolio managers to its high yield strategies fund last week. David Bowser was moved to the position of primary portfolio manager from Standish Mellon Asset, where he had been...

NEWS: Can The Past Predict Future CDO Success?(Wachovia Securities Inc. on collateralized loan obligations)
November 6, 2006... Wachovia Securities CDO analysts last month sought to find a new way to answer an old question: Is there a method to project future new-issue CDO performance using historical data? Their ultimate finding was yes, although with some caveats. ...

News: Taken Offshore, Brazilian FIDC Snapped Up By Hedge Funds.(receivable investment fund)
November 6, 2006... The appetite for straight Brazilian exposure among risk-seeking foreign investors appears to be hearty. Union National recently sold to about 15 hedge funds R$350 million ($163 million) in a receivable investment fund (FIDC) backed by...

News: U.K. And Hedge Funds Dominate Euro High Yield.(Survey)
November 6, 2006... Non-E.U. investors are most present in Europe's government bond and CDO markets, while U.K. investors and hedge funds dominate the European high yield market, according to a recent survey of investor trends in European debt by The Bond Market...

Gainers & Losers: Charter/Salton.(Charter Communications Holdings L.L.C.)(Brief article)
November 6, 2006... Charter Communications Holdings Llc made gains last week, on the news that Citigroup raised its rating on Charter Communications to "buy" from "hold." Despite Charter's weak third quarter results, Citigroup maintains that it is in a strong...

PROFILE: Nixon Peabody Targets Middle Market LBOs.(Dominick DeChiara)
November 6, 2006... Tremendous volume in the leveraged buyout market has law firm Nixon Peabody LLP digging into the middle ground. The firm is beefing up its leveraged buyout practice with the strategy of quietly targeting the abundance of middle market deals,...

MARKET BUZZ: Z Capital Hedge Fund To Invest In Junk.(Company overview)
November 13, 2006... James Zenni announced last week the formation of Z Capital Partners, LLC, a privately held alternative asset management firm based in Lake Forest, Ill. The new firm is establishing a hedge fund - with Zenni's personal capital - that will focus...

DEALS: Investors Make Room For HCA's Ten-Ton Deal.
November 13, 2006... The $5.7 billion high yield bond offering by HCA, the largest junk new issue in close to two decades and an indication to some investors of the high yield market's endless appetite, had little trouble finding eager buyers last week. A few...

Company news: Market Predicts Le-Nature's Is All Washed Up.
November 13, 2006... On the heels of criminal allegations and a forced bankruptcy for bottled drink provider Le-Nature's, market pundits fear the worst as they gear up for liquidation. If Le-Nature's is dissolved, the company - which owes more than $428 million to...

COMMENTARY: The Risky Role of Alternative Lenders in the Leveraged Loan Market.
November 13, 2006... By Anthony DiSimone, Managing Director, and Jason Perri, Investment Professional, of Bayside Capital Looking to put money to work in a crowded marketplace, hedge funds, bulge bracket investment banks, CLO/CDO funds and private equity firms...

Gainers & Losers: Cooper/Tech Olympic.
November 13, 2006... Cooper Tire & Rubber Co. made gains last week, despite the fact that its third quarter loss widened significantly as a result of North American production cuts and severance paid to its former chief executive officer. Cooper recorded a loss of...

PEOPLE: Goldman Bulks Up Leveraged Finance Team.(Goldman Sachs)
November 20, 2006... Goldman Sachs has been beefing up both its leveraged loan and high yield teams with a flurry of new hires this year. Seven in total have been added in order to lay the foundation for an increasingly comprehensive and competitive leveraged...

DEALS: Record Freescale Deal Tightens In Face Of Strong Demand.
November 20, 2006... A $5.95 billion high yield offering from Freescale Semiconductor took its place as the second-largest high yield deal ever, quickly breaking a previous second-place record set by HCA Nov. 9. In the face of overwhelming demand, issuers...

COMPANY NEWS: Eddie Bauer Acquisition To Outfit New Debt.
November 20, 2006... Last week's acquisition announcement for Eddie Bauer Holdings has the market buzzing with the expectation of new debt to fund its $614 million price tag. Though the company has yet to release a plan for a capital structure, a spokeswoman for...

Market Buzz: Buyout Group Snatches Up Clear Channel For $26.7 Billion.(Clear Channel Communications)
November 20, 2006... AT PRESS TIME - Clear Channel Communications had entered into a merger agreement with a private equity consortium led by Thomas H. Lee Partners, L.P. and Bain Capital Partners, LLC. The group will acquire Clear Channel in a transaction valued...

News: ISDA Seeks Swaps Mediators Sans Bias.(International Swaps and Derivatives Association )
November 20, 2006... The International Swaps and Derivatives Association (ISDA) is still looking for a council of experts that could help mitigate disagreements between credit default swap counterparties about what constitutes a deliverable obligation. While...

Gainers & Losers: Delta/Deco Remy.(Delta Air Lines, Delco Remy International)(Brief article)
November 20, 2006... Delta Air Lines topped the gainers list last week following the news that US Airways made an $8 million bid for the airline last week. The acquisition, which would occur once it emerges from bankruptcy protection by the middle of 2007, would...

News: CreditSights' New Predictor Models Point to Higher Defaults in Europe.
November 20, 2006... In yet another testament to the continued growth of the European leveraged finance market, CreditSights, a New York-based, independent credit research and strategy firm, has launched two new models for predicting corporate defaults in Europe....

Asia: AlixPartners Follows Burgeoning Debt Market To India.
November 27, 2006... The World Economic Forum's annual India Economic Summit takes place in New Delhi this week and, according to market talk, it promises to be one of the most highly attended international events this year. More than a decade has passed since...

Buyout deal: Blackstone To Flood Debt Market With King-Size LBO.
November 27, 2006... Just when the market thought nothing could top the $33 billion buyout of HCA announced earlier this year, make way for the $36 billion buyout of Equity Office Properties Trust by The Blackstone Group, and the colossal amount of debt expected to...

Investor Profile: Babson Capitol's Jill Fields Traditional Tough.
November 27, 2006... For high yield portfolio manager Jill Fields, a managing director at Babson Capital Management, quality definitely outweighs quantity. A deal can be "mega" just as long as the company is solid and the structure not overly aggressive. "Some...

Market Buzz: JPM And Merrill To Arrange Freeport's Acquisition.(Merrill Lynch and Company Inc. and J.P. Morgan Chase and Co. arranging finance for the purchase of Phelps Dodge Corp. by Freeport-McMoRan Inc.)(State Street Global Advisors appointed Scott B. Richards)(Phoenix Capital Resources appointed Michael J. McCauley )
November 27, 2006... AT PRESS TIME -- JPMorgan and Merrill Lynch are gearing up to launch a debt package for the Freeport-McMoRan acquisition of Phelps Dodge. The transaction for $25.9 billion in cash and stock, will create the world's largest publicly traded...

News: Investors Eye Higher Credit Amid Poor HEL Performance.(home equity loan)
November 27, 2006... As evidenced in the growing CDS of CDO market, investors are becoming increasingly bearish on not only subprime mortgages issued in 2005 and 2006, but also on the CDOs that are buying the bonds backed by them. While rating agency sources say...

Gainers & Losers: Delta/Wornick.(Delta Air Lines Inc. is the winner, Wornick Co. and Accellent are losers)(Brief article)
November 27, 2006... Delta Air Lines topped the gainers list for the second week as it continues to feel the affects of US Airways' unsolicited offer to acquire the airline for $8.6 billion. With Delta management resisting the bid, US Airways is now appealing to...

COMMENTARY: Middle Market Lending in the Media Sector.
November 27, 2006... By Andre Paquette, Director, NewStar Financial One might rely upon the adage, "The more things change, the more they remain the same," to describe financing transactions in the media space. As the pace at which individuals and...

News: Rise In Second Liens Prompts Evaluations.
November 27, 2006... In the current rush for yield, second lien debt has seen many an investor flock to its lucrative territory. And with the current swell of issuance, ratings agencies have heard the market question just where this second priority debt fits into...