By Glen Fest
Tightening spreads combined with above-par secondary trading prices on a majority of spec-grade loans have spurred a rebound in recently dormant repricing activity. Year-to-date, more than 35 issuers have returned to lenders seeking new terms on more than $40 billion in loans -- including some obtained as recently as February.
May 22, 2015 – Dollar Tree has caught the repricing wave and will meet with lenders next week to discuss new terms for a $3.95 billion term loan B, including splitting up the borrowings between floating and fixed-rate tranches.
May 21, 2015 – Investors added to bank loan mutual funds for second consecutive week, while bond funds returned to favor after suffering four consecutive weeks of withdrawals.
May 22, 2015 – Red Lobster has lender consents due today on a loan amendment proposal permitting the seafood restaurant chain to open a new $175 million asset-backed revolver.
May 22, 2015 – The proceeds will be used for general corporate purposes and to repay a credit facility and revolver.
May 21, 2015 – Just six months after pulling a deal amid broader contagion in Brazil, the company managed to upsize a high yield bond offering to $900 million from $600 million originally.
May 15, 2015 – Last month, the coal producer elected to use a 30-day grace period to delay interest payments on two of its bond issues, triggering rating agency downgrades. However, it remains to be seen if the company will negotiate with investors or file for bankruptcy.
May 11, 2015 – The parent company of The Weather Channel, saddled with long-term high debt levels and declining revenue, wants to extend loan terms and pay down some of its high debt burden.
May 7, 2015 – US CLO managers are pretty evenly split on how to comply with an impending requirement to keep skin in the game of their deals.
April 29, 2015 – 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.
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.