Struggling RadioShack is reportedly in talks with a hedge fund on a financial rescue package that would include refinancing existing debt. The plan could help jump-start renewed negotiations with creditors and allow it avoid bankruptcy.
Global merger and acquisition volumes have reached a year-to-date high not seen since the heady buyout boom days of 2007. The percentage of global M&A activity financed by high yield bonds and leveraged loans is on the rise.
Debt-laden gaming and casino giant Caesars Entertainment is reportedly slated to start restructuring talks with bondholders after Labor Day. Caesars has approximately $20 billion in outstanding debt.
A bankers meeting is scheduled for Sept. 3 for the launch of a $2.085 billion loan facility for Scientific Games Corp., which is using the proceeds to partially fund its announced $5.1 billion acquisition of Bally Technologies.
The European high yield market will show more stability than the U.S., according to a report published by Fitch Ratings. Outstanding European high yield volumes contrast favorably with the U.S. market.
Creditors of bankrupt Momentive Performance Materials who initially said no to getting paid cash in lieu of new debt now want to get cash, but the company says it is too late.
Investors have put another $537 million into high yield bond funds in a continued show of support for the asset class in the aftermath of large outflows. Loan funds saw outflows of $150 million.
Burger King will sell $9.5 billion in debt and has financing commitments of $12.5 billion for its $13.4 billion purchase of Canadian coffee restaurant Tim Hortons. JPMorgan and Wells Fargo have committed to provide financing.
JPMorgan estimates that dealer balance sheets for high yield bond holdings are at $6.2 billion after further shedding of those assets in the wake of a Federal Reserve Report.
Global default activity has been accelerating and the total default tally for the year is up to 39 issuers, according to Standard & Poors.