By Glen Fest
Moodys Investors Service, for one, is skeptical of how much free cash flow earnings the combined companies will have through 2016. It thinks that plans for reducing leverage within a year of closing are in need of a makeover.
March 2, 2015 – The proceeds will be used to finance a tender offer for its $525 million 6.875% second lien senior secured notes due 2018.
March 2, 2015 – Proceeds from the seven-year senior secured second lien notes will be used to repurchase the company's 7.375% bonds due 2016.
March 2, 2015 – Film and television studio company Lions Gate Entertainment is putting together a $250 million second-lien term loan offer through which it plans to repay its existing second-lien loan as well as a portion of its first-lien revolver, according to ratings agency reports.
March 2, 2015 – The proceeds will be combined with corporate cash to redeem the company's 6.375% senior notes due 2019; outstanding debt will be reduced by $340 million.
February 25, 2015 – "Obviously we are going to look for the best opportunity upon the market conditions to get the best financial outcome, CFO Bob Gunderman told analysts during a conference call.
February 13, 2015 – Another wall of maturing speculative-grade corporate debt is in sight. In its annual report on refunding risk and needs for spec-grade corporations, Moodys Investors Service tallied $791 billion of loans and bonds coming due through 2019. That is the largest amount of five-year debt maturity in six years.
February 13, 2015 – The Securities and Exchange Commission used to have a double standard when it came to tender offers: now speculative-grade issuers and investment grade issuers can hold tender offers as short as five days.
February 6, 2015 – Falling oil and gas prices have had a near-calamitous effect on high-yield bond prices and loan spreads, yet many below investment grade companies are still able to borrow money without promising to maintain certain financial metrics
January 28, 2015 – Netflix will double its debt load this year with a planned $1 billion issue, prompting Moody's to issue a downgrade to its credit profile. But the debt will help Netflix step up the volume of its original content output in 2015, and accelerate its international expansion goals.
January 30, 2015 – Fewer companies have tapped the leveraged finance market for funding, according to year to date figures compiled by Dealogic.
January 22, 2015 – The Pittsburgh-based chemical producer crapped a $400 million bond sale due to unfavorable market conditions. It also cancelled a tender offer for its $300 million of outstanding 7.875% senior notes due 2019, which was to be funded by the new issuance.
January 23, 2015 – Moody's Investors Services top rankings of U.S. CLO managers still includes many familiar names, but the usual suspects lost market share in the fourth quarter of 2014 to some medium-sized managers.
January 15, 2015 – Caesars Entertainment Corp. filed to place its key operating unit into voluntary Chapter 11 bankruptcy Thursday, setting in motion a battle against junior bondholders who have petitioned for their own involuntary restructuring plan in a Delaware federal bankruptcy court.
January 14, 2015 – International Association of Credit Portfolio Managers latest survey results shows that expectations for corporate defaults over the next 12 months have increased. Spreads are expected to remain in tact, however.
January 8, 2015 – Caesars Entertainment is already negotiating with first-lien creditors about taking a haircut in its plan to restructure the mountain of debt it took on in its 2007 buyout. Now its embroiled in a dispute with swaps holders over whether it actually defaulted when it missed December interest payment on nearly $4.5 billion in second-lien secured bonds.