November 26, 2014 – Varsity Brands Holding Co. is shopping $1.21 billion in loans for fund the proposed buyout of the former Herff Jones Inc., a market leader for school-affinity products like cheerleader uniforms, yearbooks, and class rings.
November 26, 2014 – Wells Fargo expects Issuance of collateralized loan obligations is to moderate in 2015, to $90 billion; that compared with $105 billion in the first 10 months of 2014.
November 26, 2014 – Broadcast and cable network operator ION Media Networks finalized a $150 million term loan add-on Tuesday that will be used toward funding a shareholder dividend.
November 24, 2014 – The Loan Syndications and Trading Association filed a petition against the Federal Reserve Board and Securities and Exchange Commission, asking a D.C. Court of Appeals to suspend the final risk retention rule approved by regulators last month.
November 19, 2014 – The market for collateralized loan obligations hit an all-time high in 2014 but the onset of a number of regulatory requirements, including the Volcker Rule, mean the good times may not last long.
November 9, 2014 – Regulators' patience is running thin for banks that continue to overindulge in leveraged loans despite repeated warnings from the agencies over the past two years.
November 7, 2014 – In the third quarter, the private equity market experienced a spike in the proportion of equity financing in U.S. leveraged buyouts, increasing to 44% from 37% in the second quarter. Instead of citing tighter lending standards (including federal leveraged loan guidance), the Private Equity Growth Capital Council pegged it on the robust number of middle-market dealsone of several positive factors for PE investors as the year winds down.
November 7, 2014 – John Lapham, co-head of leveraged finance at PineBridge Investments, thinks that the ranks of CLO managers could start to thin well before risk retention rules take effect in 2016.
October 31, 2014 – The middle market that the firm plays in is less liquid and less transparent than the broadly syndicated loan market, so picking up primary loans is key for a collateralized loan obligation. And what better way to do that than to have your own origination platform?
October 24, 2014 – Rising interest rates could reduce an important form of credit enhancement for U.S. collateralized loan obligations, potential putting them at risk for downgrades in their credit ratings, according to Moodys Investors Service.
October 21, 2014 – Unlike residential mortgages, commercial mortgages and even auto loans, there is no carveout for below-investment grade corporate loans that meet specific criteria.
October 21, 2014 – Bankers and collateralized loan obligation managers are on edge to see the final rules impact on CLOs. A 2013 version of the regulation would require managers to retain 5% of the loan packages they securitize. Organizations like the Loan Syndications and Trading Association have argued the CLO market will be materially harmed by the retention rule.
October 17, 2014 – Serving small-cap and middle-market firms, and providing financing that complements rather than displaces corporate bank structures is how business develop corporations can succeed in meeting the demand for borrowing that large banks don't fulfill, says Raj Vig, managing partner at TCP Capital Corp.
October 17, 2014 – Nearly half the high-yield bond issues that hit the market in September had something in common for investors: major exposure. It's all due to a trend toward fewer covenant protections in issued spec-grade notes, reports Moody's.
October 10, 2014 – As competition to lend to smaller companies heats up, reducing returns, business development companies are turning to off-balance sheet investment vehicles to put more borrowed money to work without running afoul of regulatory limits.
October 10, 2014 – A final "net stable funding ratio" requirement comes after years of efforts to revise the ratio amid industry complaints that it will increase funding costs. Individual banks and trade groups had lauded the committee for making progress in its most recent NSFR proposal released in January, but said several concerns remain.
October 3, 2014 – The Treasury's new rules restricting the tax benefits of corporate inversions have already prompted the cancellation of one deal, and according to Moodys Investors Service several other pending M&A agreements in the medical industry could come under renewed ratings scrutiny due to the Treasurys actions.
Firm: Monroe Capital