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.
Omnicare Inc.'s legal woes will have no immediate impact on its credit rating from Moody's Investors Service, though the latest lawsuit brought by the Department of Justice creates uncertainty about the company's future finances and ability to access debt markets.
The American Bankruptcy Institutes Commission to Study the Reform of Chapter 11 has released its long-awaited report; it includes a number of proposals that could reduce recoveries for banks and other senior lenders.
Falling crude prices have taken a toll on the speculative-grade oil and gas firms as investors unload their debt. Now analysts are beginning to considering whenor ifthe lower tide will begin to bear on the credit, operations and liquidity of these issuers. So far, the evidence is mixed.
The electronics retailer, which most analysts feel is in an irreversible spiral into bankruptcy, revealed that it received the notice of default from Salus Capital Partners related to a recapitalization agreement with PE rescue specialist Standard General in October.
Jeffrey Sabin was previously co-head of the global financial restructuring group at Bingham McCutchen