High Yield Report articles from September 2003

High Yield Report archives from September 2003

Convertibles.
September 8, 2003... The convertible bond market is hot, and high yield companies are taking full advantage of it. To be sure, last week's convertible bond offering from fallen angel ABB was not only extremely successful and well-received, it could also pave...

US.
September 8, 2003... Well, summer came, and it's almost gone, but the money's still flowing into high yield mutual funds at record levels, and market sources are optimistic that the rally the asset class has been enjoying thus far could continue well into the...

Europe.
September 8, 2003... The European high yield market is chomping at the bit. Bankers have returned to their desks after the summer break and investors are laden with cash after the huge inflows that continue to flood the market, but the most important element...

The Word Is.(Brief Article)
September 8, 2003... The first day back at work after the Labor Day weekend was a quiet one: Only one deal, an issue from Hyundai, was on the US high yield calendar. But within 24 hours, things had changed, and by Wednesday of last week, there were around four...

Project Finance.
September 8, 2003... The Blackout of 2003, which many have blamed upon the lack of communication between the utility companies and the operators of the power grid in the North Eastern part of the US, has resulted in heated debate and discussion among politicians,...

US Company News.(Quintiles Transnational Corp.)
September 8, 2003... Yes, there's plenty of money out there that needs to be put to work, especially with the latest inflow of cash into high yield mutual funds (see Money, p. 1). But that doesn't mean that investors are going to dump it just anywhere - after...

Profile.(Royal Bank of Scotland)(Company Profile)
September 8, 2003... Royal Bank of Scotland has been the source of much curiosity among European high yield investors and bankers alike. Less than two years after the firm exported one of its most successful European products to the US and established a new...

Opinion.
September 8, 2003... Grab a seat and buckle up: Here's Chapter 3 of Bill Healey's four-part series on the current state of global credit markets, "I'm a Credit Investor - Get Me Out of Here." "Should'a got yo'self a 'Coon Dog," said my cousin Arthur, peering...

US Company News.(Sprint and other telco bond issues experiencing bullish performance)
September 15, 2003... Investors who don't already own bonds issued by the Sprint affiliates must be kicking themselves: They have missed out on the huge rally that has taken place over the past three months. But there are some who believe that despite this...

US Company News.(Kinetic Concepts redeems bonds early, creates ownership problem for some holders)
September 15, 2003... A bond normally has a 30-day call notice on it, a standard provision of every indenture. But recently, Kinetic Concepts approached holders of its 9.625% senior subordinated bonds and solicited their consent to shorten the minimum notice period...

Europe.(Italian eyemaker Safilo's results off reducing value of recently issued bonds)
September 15, 2003... High yield deals from Italian issuers haven't had the best reputation in the past, but few expected any nasty surprises from Italian eyewear maker Safilo. When the company released unexpected Q2 results that were way off the mark, the...

The Word Is.(MCI and Global Crossing's reorganizations will put more pressure on the telecom industry)
September 15, 2003... As per recent news stories, two huge players in the telecommunications industry, WorldCom (now known as MCI) and Global Crossing, look set to regain the kind of prominence they once had. MCI last week crossed a big hurdle with its...

Syndicated Loans.(Reglus' Enterprises software helps administer and management syndicated loans)
September 15, 2003... As the securities industry moves steadily toward straight through processing, bankers must wonder at times why they're still scratching pen to paper to ink deals, and often devising ad hoc methods to keep track of market activity that can't...

US Company News.(Dobson Communications floats high yield investment)
September 15, 2003... Money is still pouring into the high yield market ($1.14 billion flooded funds the week ended Sept. 3, and a whopping $3.3 billion did a week earlier) and issuers are jumping at the opportunities it presents. New deals are pricing rich and many...

Profile.(Lawrence Post of MW Post Advisory Group emphasizes research to value companies)
September 15, 2003... There's one thing sure about Lawrence Post: He knows strategy. While most market players were enjoying the summer holidays, Post was busy hammering out a deal with Principal Global Investors. Two weeks ago, MW Post Advisory Group, an...

Fleet's Taylor Recommends Lodging.(economic rebound for investors could be the hotel sector)
September 15, 2003... Looking for the best way to play the economic rebound? You could do worse than to look to the lodging sector, which according to Fred Taylor, head of high yield research at Fleet Securities, could be the next beneficiary of corporate dollars....

Europe.
September 22, 2003... Last week's announcement that Merrill Lynch's former managing director of European leveraged finance, Marisa Drew, was leaving the firm to join Credit Suisse First Boston as a managing director and head of European leveraged corporate finance...

US Company News.
September 22, 2003... The news that former denim king Levi Strauss has, for the most part, sorted out its investigation of alleged tax fraud (which was prompted by a wrongful termination complaint filed by two former employees) is a major victory for the company....

US Company News.
September 22, 2003... The only thing that's changed since HYR last wrote about Revlon is that the company's chairman, fat cat and turnaround specialist Ronald Perelman, pumped a few million dollars into the company. But that's not enough to keep it going and...

The Word Is.(Brief Article)(Editorial)
September 22, 2003... A couple of months ago (HYR 7/21/03), I wrote on the topic of structural subordination in Europe, an issue that is a large bone of contention and one that's at the forefront of the high yield market there. I also gave you the heads-up on a...

Profile.(Pareto Partners)
September 22, 2003... For Pareto Partners' high yield team, the bonds they don't buy are more important than those they do. That's because their investment philosophy aims to provide superior risk-adjusted returns through a strategy designed to capture...

Opinion".
September 22, 2003... Here's the fourth and final chapter of Bill Healey's series on the current state of global credit markets, "I'm a Credit Investor - Get Me Out of Here." In the first chapter of this series, "Seven Scrawny Cows," I argued that we are...

People Moves.(Brief Article)
September 22, 2003... Marisa Drew, former MD in European leveraged finance at Merrill Lynch (see story p. 1), has left to take up a new position at Credit Suisse First Boston. Drew will join CSFB in early October as MD and head of European leveraged corporate...

Deutsche's Ozyasar: Beware of Triple-Cs.
September 22, 2003... After remaining at unusually high levels for an extended period of time, the yields on triple-C bonds have come crashing down. Spreads between triple-Cs and higher quality names, which had approached 20 full percentage points in mid-2002,...

Syndicated Loans.(Brief Article)
September 22, 2003... The leveraged buyout (LBO) market is starting to heat up and there are several transactions in the pipeline that should keep syndicated loan investors grown weary of refinancings happy for some time. First on the list: Ondeo Nalco's LBO for...

US/European Company News.
September 22, 2003... What a difference four months makes. After pulling a high yield bond deal in May due to lack of investor interest, Huntsman was not only able to price the deal last week, but was able to upsize it to $380 million, from $250 million, and...

CDOs.
September 29, 2003... Mention high yield to someone in the collateralized debt obligation (CDO) market, and you'll likely elicit a negative reaction. After all, high yield has been the least favorite asset class for CDO collateral over the past couple of years, as a...

Europe.
September 29, 2003... It seems that the upcoming bond transaction from the world's third largest music group, EMI, has left European bond investors a little bewildered. Last week, the company announced plans for a $1.6 billion takeover bid for Warner Music, the...

US Company News.(Level 3 Communications Inc.)
September 29, 2003... With a billionaire financier like Warren Buffet behind it, it stands to reason that a company like Level 3 Communications shouldn't have much of a problem getting a deal done. In addition, price talk on the company's planned $500 million...

The Word Is.(Brief Article)
September 29, 2003... Over the past two years, high yield bonds were virtually shunned by those looking to put together collateralized debt obligations (CDOs). Rating downgrades and insanely high default rates led investors to dump the asset class altogether,...

Credit.
September 29, 2003... While fallen angels have dominated headlines over the past couple of years, their direct opposites, rising stars, have been few and far between. Last week, however, Moody's Investors Service bucked the predominantly downward rating...

Perspective.
September 29, 2003... To be sure, the surge of inflows to high yield mutual funds has helped produce hefty returns for investors. In the first seven months of 2003 alone, mutual funds saw inflows of more than $20 billion, a figure that beat out the prior full-year...

Profile.(Dan Mummery of Cooley Godward)
September 29, 2003... Although money is still pouring into high yield (a few recent outflows notwithstanding), a number of high yield strategists are starting to express concern over some of the large rescue financings that have come to market lately. Such...

Forthcoming Exit Financings Could Spice Market Up.
September 29, 2003... Syndicated loan investors fed up of seemingly ceaseless refinancings and eager for something fresh to feed their portfolios with will be happy to know that there are several exit financings in the new deal pipeline. These deals will bring...