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.
"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.
Regulators have been spooked by the possibility of default on large loans to highly leveraged businesses for the past few years, but they are now beginning to worry that such defaults could cause systemic shock waves through loan mutual and exchange-traded funds. Yet policymakers have also given signals to the market that any macroprudential concerns about leveraged lending are still mild.
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.
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.
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
Lenders are concerned about the performance of syndicated leveraged commercial and industrial loans in 2015, a Fed survey said Monday, underlining regulators' worries that such loans may be a source of systemic risk.
Year to date issuance for the high yield market is at its lowest point since 2009; similarly syndicated loan volumes are also off to its slowest start in eight years. Can the LBO pipeline, flush with blockbuster deals, help turn things around for leveraged finance?
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.
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.
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.
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.
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.
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.
Volatile market conditions, as well as a slowdown in retail demand, helped drive down overall issuance in the leveraged loan market to $940 billion, according to data compiled by Thomson Reuters LPC.
Chief Financial Officer
Firm: Windstream Holdings