The loan will be for exit financing as well as refinancing an existing debtor-in-possession loan, according to reports and KDP Investment Advisors. A lenders meeting through bookrunner is scheduled for Wednesday through bookrunner Credit Suisse.
Federal Reserve Board Chair Janet Yellen said Wednesday she is seeing some riskier lending taking place because of the Fed's zero interest rate policy (including leveraged loans), but noted that the boost in leverage and credit that typically accompany a financial bubble have not yet materialized.
U.S. high-yield bond defaults jumped significantly in the first quarter, fueling a slight rise to 2.3% of the trailing 12-month global speculative-grade corporate default rate to the start of 2015, according to a monthly default report from Moodys Investors Service.
Commitments are due Monday for a $275 million bankruptcy-exit loans proposal that Longview Power is syndicating through Morgan Stanley and private equity sponsor Kohlberg, Kravis & Roberts.
In a report compiling the companies rated B3 with negative outlooks or lower in its ratings, Moodys said the list of 184 firms is the highest level the quarterly list has seen in the last two years. That was a net addition of 10 companies from the December 2014 list
Longview Power met with lenders Wednesday, and set price talk on its $275 million loans proposal through bookrunners Morgan Stanley and KKR at L+ 625-650. T he electricity generator is seeking a term loan and a revolver to exit a Chapter 11 bankruptcy it filed in August 2013.
Radio Shack's bankruptcy isn't the only reason; corporate troubles in Latin America also had an impact, according to Moody's Investors Service.
The global corporate speculative-grade default rate from Moodys Investors Service held steady at 2.0% in January, with three defaults during the month including the bankruptcy filing by Caesars Entertainment Operating Co.
In a monthly report issued Monday, the ratings agency stated the trailing 12- month rate rose to 1.8% in January from 1.5% in December after the seven default events during January.
Although its corporate and debt ratings were downgraded last week due to sovereign debt concerns regarding Venezuela, Citgo Petroleum is planning a $2.5 billion debt package through a subsidiary company to finance a distribution to its state-owned parent firm.