March 10, 2014 – CEVA Group is on the market with a two-part bond offering that totals $825 million. It will use the proceeds to fund three tender offers it launched March 4.
March 10, 2014 – Spirit Aerosystems, on the heels of a $300 million notes issuance last week, is now proposing a $540 million loan refinancing offer.
March 10, 2014 – Global Ship Lease Inc. has returned to the high yield market with a $400 million bond deal that it pulled back in December.
March 10, 2014 – Fast-growing gym franchise Planet Fitness is in the market for a $390 million term loan B, according to KDP Investment Advisors.
March 7, 2014 – Cerberus Capital Management plans to use debt financing of approximately $7.6 billion to complete its announced acquisition of Safeway Inc.
March 6, 2014 – This methodical pace to put together a $2.5 billion loan package seems to be in line with a careful integration strategy observers say is being followed to map out cost-cutting, as well as what could be a new challenging management culture now that IMG is coming under the leadership of WMEs brash co-CEO Ari Emanuel.
March 6, 2014 – With another reshuffling of assets among its subsidiaries, few are coming to praise Caesars Entertainment Corp., though none are ready to bury it either. The casino operators latest move has intensified speculation about a distressed exchange.
March 6, 2014 – Larger banks have unseated regulators as the bogeyman standing in the way of small banks' survival. Such pressure is prompting more bankers to talk about the need to gain scale most likely through consolidation to compete.
February 27, 2014 – Overall issuance of high yield bonds may be down slightly this year, but mergers and acquisitions are likely to play a much bigger role. And financial sponsors may not have as much flexibility to lever up to make acquisitions, yielding to strategic acquirers.
February 28, 2014 – The once-feared refinancing cliff of 2015 has been pushed back to 2018; but has this just created problems down the road?
February 27, 2014 – Loan participations are poised for a comeback as community banks look at ways to keep the business of clients. Small banks have plenty of challenges as they try to book loans, including artificially low interest rates and deleveraging by some borrowers.
February 20, 2014 – The $5.4 billion merger of International Lease Finance Corp. (ILFC) and AerCap will bring some welcome supply to the high yield debt markets and put to rest uncertainty about the disposition of one of the largest aircraft leasing businesses.
February 20, 2014 – The strong growth in U.S. CLO issuance last year didnt do much to shake up manager league tables, in part because so many deals came from new entrants. But there was some churn in the top ranks.
February 20, 2014 – For buyers, such bankruptcy auctions, known as 363 sales, are tricky but attractive. If successful, the buyers get a bank that is still under considerable stress but free from things like the holding companys trust-preferred securities debt.
February 13, 2014 – After coming to a near-halt after the final version of the Volcker Rule was released in mid-December, the primary CLO market has shifted cautiously into low gear, despite the fact that the rules of the road remain unclear.
February 18, 2014 – More corporate borrowers are negotiating for stronger controls over loan participations and syndications being worked out by arrangers. One feature growing more common in loan agreements today is the inclusion lists of disqualified institutions.
February 12, 2014 – KKR is shuttering two funds aimed at individual investors and dedicated to investing in high yield, emerging markets and distressed credit. The move raises questions about the buyout firms plans for individual investors as well as the appeal of these assets.
February 6, 2014 – Smaller banks have long touted their ability to outperform bigger competitors when it comes to serving small businesses. That sentiment may no longer be true, some industry observers say. Technology is slowly eroding any advantage smaller banks once held.
February 6, 2014 – The quality of high yield bond covenants will likely improve over the course of this year, but dont expect a sea change in protections for bondholders.
February 6, 2014 – The UK chemicals giant, which produces ethylene and polymers used in the manufacture of plastic containers, PVC pipe material, and synthetic rubber, is seizing capital markets attention through a steep refinancing effort that involves what could be the second-largest leverage loan issue so far in 2014.
January 30, 2014 – According to Thomson Reuters LPC, 36 companies (through Jan. 29) had improved their standing on proposed loans with reverse flex yields that slashed original issue yields in their favor.
January 30, 2014 – The sell-off in emerging markets over the past couple of weeks is no reason to hit the panic button, according to U.S. credit market participants. Observers say were unlikely to see a repeat of the last emerging markets and credit investors may be better off weathering the storm.
February 7, 2014 – Despite $122 billion in volume in the fourth quarter, secondary trading activity for leveraged loans for 2013 fell just short of matching the all-time high volume set in 2007, according to the Loan Syndications and Trading Association.
January 23, 2014 – What was once an experiment in financial democratization aimed at supplanting mainstream banks and lenders has evolved into a fast-growing loan market thats embracing the traditional players of finance as both investors and partners in their loan products.
January 23, 2014 – Business development companies, which have become important lenders to small and medium sized companies, could get some additional financial muscle, potentially putting them in more direct competition with banks.
January 23, 2014 – Banks that want to keep their holdings of collateralized loan obligations will likely face an uphill battle getting these investments in compliance with the Volcker Rule, according to Wells Fargo.
January 16, 2014 – Managers arent waiting around to see if collateralized loan obligations get a last-minute reprieve from the Volcker Rule. Some recently priced deals, by managers including Columbia Management Investment Advisors and Black Diamond Capital Management, have provisions for excluding investments in corporate bonds.
January 16, 2014 – It may seem like an odd time to launch a new credit investment firm. The market is in a transitional period as it prepares for an environment of rising interest rates and many investors are moving to shorter-duration, risk-heavy debt. Its in this environment that as MetWest Ventures launched Aristotle Credit Partners.
January 16, 2014 – Investors who snapped up second-lien debt in the speculative-grade market in 2013 may come to rue their eagerness, according to Moodys Investors Service.
January 9, 2014 – Overall junk bond issuance may be slowing down, but the New Year is off to a promising start for add-ons. Until recently, however, it was far more common for companies to issue add-ons that were smaller, as opposed to larger, than the original offerings.
January 9, 2014 – In an effort to keep small business customers happy, some community banks are working with alternative lenders that provide small-dollar loans to businesses. But bankers must be mindful of the potential regulatory and reputational risk tied to referring clients to outside firms.
January 9, 2014 – Congress and trade industry groups are pressuring regulators to adopt Volcker Rule exemptions for institutional CLO holdings, as well as CDOs backed by trust-preferred securities.
January 2, 2014 – While 2014 is not expected to equal last years record-setting high yield new issue volume, there are still plenty of large deals waiting to be priced. There are at least five deals of $1 billion or more expected to come to the junk bond market this year.
January 3, 2014 – As banks look to find new sources of revenue, more and more of them are ramping up in asset-based lending.
January 2, 2014 – First-time collateralized loan obligation (CLO) managers entered the game in droves in 2013, and participants expect this tend to continue in 2014, even if risk-retention regulation will make it more difficult for smaller firms to keep playing.
Co-Founder, Chief Investment Officer
Firm: Highland Capital Management