Fewer below investment grade issuers tapped the leveraged finance market for funding last year, data from Dealogic indicates.
Platform Specialty Products on Monday allocated a downsized $500 million term loan B offer and plans to wrap up an 83 million euro-denominated loan Tuesday, according sources close to the deal.
Dollar Tree was assigned its first-ever, speculative grade ratings Monday as price talk terms emerged for part of the nearly $8.5 billion debt package that will be used to finance its long-sought Family Dollar acquisition.
Commitments are due today for a downsized, multicurrency loan proposal of approximately $600 million from Platform Specialty Products and its MacDermid Inc. subsidiary, which today also priced and sold an upsized $1 billion notes offering in a 144A private sale.
Seven global corporate issuers have defaulted in the first few weeks of 2015, putting the market on a quick, early pace to tally far more default actions this year than in 2014.
After initial discussions with lenders in New York today, price talk is ranging from 450 to 475 bps over both Libor and Euribor rates for a 1.97 billion euro-equivalent seven-year term loan and a 300 million, five-year revolver. The term loan will be divided into currently unspecified Euro- and U.S. dollar-denominated tranches.
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.
The repayment of a $1.15 billion term loan and the planned payoff of $650 million in 8% senior secured notes could help Rite Aid reduce its annual interest expense by as much as $20 million a year, according to a Moodys Investors Service report issued Wednesday.
The New Year brought no changes to the ongoing siphoning of funds from the loan and high yield markets this week.
As credit quality declines and gas and oil prices fall, companies will seek out second-lien financing to fund new development, creating an additional layer between bondholders and repayment, Moody's said in a report.