In a report published this week, Standard & Poors and Moodys investors Service each downgraded COREs corporate profile two notches after the company entered a 30-day grace period for missing an interest payment on the second-lien facility.
Steven Wilamowsky has joined Chapman & Cutler the firm as a partner in the firms litigation, bankruptcy and restructuring department.
Standard & Poors global corporate default total reached 50 for the year last week, the highest total through mid-June since 2009 and only 10 defaults shy of matching the entire years total for 2014.
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.
Firm: Small Business Investor Alliance
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