By Glen Fest
With history as a guide as well as signs of slower issuance the remainder of the year the CLO market may be in store for a somewhat bearish summer in terms of spreads.
June 29, 2015 – SS&C Technologies has accelerated the deadline of its $2.63 billion loans proposal, with commitments due today rather than the previous Tuesday cutoff date. Final terms are Libor plus 325 bps, a 99.5-cent OID, and a 0.75% Libor floor.
June 29, 2015 – Antivirus software firm Avast Holding closed on its $2754million loan repricing efforts Friday, gaining final terms on the wide end of price talk, as well as a corporate upgrade from Moodys Investors Service.
June 29, 2015 – The proceeds will be used to purchase aircraft and for general corporate purposes. The debt was offering in a private placement via Jefferies.
June 29, 2015 – The repricing effort by the generic drug producer shaved the floating rate by 50 basis points, to Libor plus 325 bps from 400 bps over Libor.
June 26, 2015 – The debt load for corporate borrowers is exceeding earnings and leverage is nearing all-time high levels, according to Michael Contopoulos, high yield credit strategist at BAML.
June 19, 2015 – Goldman Sachs has initiated plans to enter the online consumer lending business, making unsecured personal loans of $15,000 to $20,000 to individuals and potentially small businesses.
June 18, 2015 – Business development companies (BDCs) are making another push at lifting restrictions on the amount of borrowed money they can put to work.
June 12, 2015 – While oil prices have steadied in recent weeks, it may be up to another year for oilfield services firms to reap any benefits, according to Standard & Poors.
June 12, 2015 – The Walmart-owned retailer recently launched new partnerships with two online lenders that will allow Sam's Club customers to apply for discounted loans.
June 11, 2015 – The coal producer is delaying an interest payment for the second time in two months.
June 3, 2015 – Bank of America scored a legal victory this week for all holders of second liens when the Supreme Court ruled that bankruptcy courts cannot void a second mortgage because it exceeds the value of the home.
June 4, 2015 – More banks are looking at factoring, a form of asset-backed lending popular in the retail industry. Problem is, a lot of non-banks are looking, too.
May 29, 2015 – Charter Communications' management is confident the $25 billion in secured debt issued to fund its takeover of Time Warner Cable will earn investment grade ratings; while that may be a stretch, the loans and/or secured bonds will surely be in high demand.
May 29, 2015 – The high yield bond market is less interest rate sensitive compared to other fixed-income and likely to withstand an increase from the Fed, according to John Addeo, a portfolio manager and managing director at Manulife Asset Management.
May 22, 2015 – 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 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.
Firm: Small Business Investor Alliance
In the news: Round Two: BDCs Make a New Pitch for More Leverage