How BDCs Can Coexist With Bankers

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.

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Charter Communications Prices Upsized $3.5B HY Notes

– Charter Communications priced $3.5 billion of senior unsecured notes Wednesday, more than double the $1.5 million originally offered.

Media General Driving By with $300M HY Bonds

– Media General is driving by with $300 million of senior notes due 2022 to help fund its acquisition of LIN Media.

SourceHOV Issues $1.035B in Loans

– Transaction processor SourceHOV completed a $1.035 billion first- and second-lien loan offering that will be used to handle refinancing and equity buyout transactions related to its previously announced merger with BancTec.

Southeast PowerGen Proposes $550.5M in Debt Facilities

– Southeast PowerGen (SEPG), a Georgia-based operator of six gas-fired power facilities, is seeking to place $550.5 million in senior secured credit facilities, according to KDP Investment Advisors and ratings agency reports.

  • Charter Comm Seeks $1.5B to Fund Purchase of Comcast Assets
  • Price Talk Revised on Inc Research’s $525M Loans Proposal
  • Commitments Due for Block’s $225M Loan
  • Toms Shoes Revises Talk on $360M Loan Offer
  • SourceHOV Marketing $1.035B in Loans
  • Moody's: End of QE3 Won't Impact HY
  • Tecomet Proposes $710M in Loans
  • Evraz Drives by HY Market with $500M Proposal
  • Abaco Energy Seeks $175M Term Loan to Fund Acquisition
  • Carizzo Oil & Gas Prices Upsized $300M of Notes
  • More

    Featured Articles

    Moody's: Rising Rates Will Reduce Excess Spread for CLOs

    – 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 Moody’s Investors Service.

    Little Relief for CLOs from Risk Retention

    – Unlike residential mortgages, commercial mortgages and even auto loans, there is no carveout for below-investment grade corporate loans that meet specific criteria.

    Key Questions Arise on Risk Retention Rule

    – Bankers and collateralized loan obligation managers are on edge to see the final rule’s 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.

    'HY-Lite' Bonds Gaining Ground

    – 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.

    BDCs Moving Leverage Off Balance Sheet

    – 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.

    What Basel's Other Liquidity Ratio Means for Banks

    – 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.

    Healthcare M&A at Risk from Inversion Rules

    – The Treasury's new rules restricting the tax benefits of corporate inversions have already prompted the cancellation of one deal, and according to Moody’s Investors Service several other pending M&A agreements in the medical industry could come under renewed ratings scrutiny due to the Treasury’s actions.

    Right Structures Key for Middle Markets

    – Middle market credit deals are going to rely more and more on finding the right structure to be successful, and firms that prove nimble at putting together a variety of structures will find success with the widest swath of clients, according to Goldman Sachs veteran Thomas Goila.

    FINRA Pushes for More HY Trading Transparency

    – An increasing share of corporate bond trades are taking place on electronic venues, and the Financial Industry Regulatory Authority (Finra) wants them to start disclosing more information. The push for more disclosure comes as electronic trading platforms siphon off an increasing share of trading activity.

    Fitch Raves on Revolver Recoveries

    – With the exception of “highly cyclical” commodities businesses or an occasional instance of fraud, secured lenders of revolvers and asset-backed loans have largely experienced full recoveries in bankruptcy proceedings over the past nine years, as detailed in a new report by Fitch Ratings.

    Investors Playing Nice with Toys ‘R’ Us

    – According to Markit, three existing loans and a notes issue that are being refinanced took a major pricing leap after the company outlined plans in a Sept. 23 registration filing to issue new term loans of up to $1.025 billion in addition to a new $350 million revolver tranche.

    Euro CLOs Taking a Shine to Volcker

    – Several European CLOs have garnered attention this year as the first breed of self-professed Volcker-compliant issues from Europe, designed to attract U.S. bank investments or meet the regulatory requirements of a U.S.-based parent bank.

    Fed Flexes Muscle on Leverage Limits

    – Credit Suisse,which is the top bookrunner for loans backing LBOs this year, has reportedly received a warning from the Federal Reserve about exceeding guidelines on the amount of debt it will finance for corporate borrowers.

    Scientific Games Reshuffles Debt

    – Scientific Games is stretching its balance sheet to buy rival slot machine maker Bally Technologies for $5.1 billion, betting that the cost savings will help it compete in a market hit by weaker consumer spending and competition from online gaming.

    Healthcare Covenants In Poor Shape

    – Covenants of healthcare company junk bonds have been in declining health this year. Covenant quality for these companies is declining at a faster rate than the industry as a whole. Lower default rates are partly to blame.


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Firm: Aequitas Capital

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