By Glen Fest
The CLO market has been surprisingly robust thus far in 2015 but as many industry participants observed at an industry conference in New York this week, its likely that managers and issuers will have to tap the brakes before the year is out.
May 4, 2015 – The bond deal will be issued in dollar and euro-denominated tranches. Credit Suisse, JPMorgan, Bank of America Merrill Lynch, Barclays, Citigroup and Goldman Sachs are bookrunners on the transaction.
May 4, 2015 – The master limited partnership formed by PBF Energy will also use the proceeds to fund the acquisition of Delaware City Products Pipeline and Truck Rack.
May 4, 2015 – Zayo Group has priced $350 million of senior notes and extended the maturity of its existing $2 billion term loan.
May 4, 2015 – Price talk has narrowed on a multicurrency loan proposal from construction industry joint venture Leighton Services divided between $350M US-dollar and $353M Australian-dollar tranches.
April 30, 2015 – Investor protection on high yield bonds has been worsening for some time, and the situation is unlikely to improve without a major economic shift, according to Moodys Investors Service.
April 21, 2015 – Rather than wait and see whether deals otherwise grandfathered can be refinanced after December 2016 without triggering compliance, it is issuing new deals with shorter non-callable periods.
April 21, 2015 – The concern: those who aren't issuing new deals after December 2016 risk losing their edge as managers.
April 17, 2015 – Worried about the impact of falling oil prices, they are pushing borrowers to name chief restructuring officers and imposing additional reporting requirements, according to Bracewell & Giuliani partner Kristen Campana.
April 10, 2015 – EU regulators are considering tightening existing risk-retention rules, potentially complicating matters for U.S. managers as they contemplate expansion into European markets.
April 2, 2015 – It's one of the biggest regulatory hurdles the market has faced since the financial crisis, and promises to bring wholesale changes to the structures of transactions as well as to the business models of managers. Clifford Chance partner Steven Kolyer weighs in.
April 9, 2015 – If the Financial Stability Oversight Council was hoping for any kind of consensus on whether and how it should regulate asset management companies, the feedback it has received on its request for comment is likely disappointing.
April 2, 2015 – The high yield corporate bond market shrugged off concerns about the earning of energy companies and rising interest rates in the first quarter, as issuance picked up from the fourth quarter of 2014.
March 27, 2015 – A case that has made its way to the U.S. Supreme Court has justices reconsidering whether second lien debt should be stripped when the collateral is underwater.
March 26, 2015 – Moody's and S&P expect to assign investment-grade ratings to a proposed merger between Kraft and H.J. Heinz, despite an excess of more than $33 billion in legacy and new debt.
March 20, 2015 – Even as their bonds sell off in the secondary market, exploration and production companies are issuing new, more expensive term debt in order to pay down their revolving lines of credit, whether by choice, necessity, or both.
March 19, 2015 – The central bank's clarification means that foreign banks don't have to sell their holdings of CLOs that don't comply with the rule, but the impact is likely to be minor, as U.S. banks will continue to divest or amend terms of such deals.
March 13, 2015 – Prolonged trade settlement times are a thorn in the side of the leveraged loan market, and the problem has only worsened over the past several years, but there are some recent signs of improvement.
Firm: Eagle Point Credit Management