Caesars disclosed last week that it discussed plans with creditors to turn one of its biggest units into a real estate investment trust. The plan's disclosure came after two key lien holders reportedly walked away from the table.
Oliver Wriedt, of CIFC Asset Management thinks the potential for consolidation among CLO managers may be overstated, despite the impact of risk rentention. Low managment fees and high financing costs make acquisitions less attractive than they have been in the past.
Global credit managers are concerned about credit defaults rising over the next 12 months, especially outside of the United States, according to a quarterly survey from the International Association of Portfolio Managers.
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.
The Treasury's new rules restricting the tax benefits of corporate inversions have already prompted the cancellation of one deal, and according to Moodys Investors Service several other pending M&A agreements in the medical industry could come under renewed ratings scrutiny due to the Treasurys actions.
A survey of investors and lenders showed that 36% expect issuance to reach $125 billion this year while 14% expect it to beat $125 billion, according to a Thomson Reuters LPC report. The report also noted that leveraged loan and high yield bond issuance has reached $976 billion through the first nine months of the year, which is down 13% from this time a year ago.
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.
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.
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.
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.
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 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.
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.
Some new players are breaking into high yield bookrunning.Bulge-bracket investment banks still dominate the underwriting league tables for larger deals. But they are ceding some ground on smaller deals, particularly those in the $100 million to $250 million range.
A judge has ruled that the involuntary bankruptcy of FMB Bancshares in Lakeland, Ga., may proceed, a decision that could embolden more trust-preferred creditors to pursue a similar strategy. Involuntary bankruptcy has emerged in recent months as a tactic for trust-preferred holders seeking repayment.
Firm: Monroe Capital