Fewer below investment grade issuers tapped the leveraged finance market for funding last year, data from Dealogic indicates.
Citgo Petroleum is planning a road show Thursday as it prepares to price a $1.5 billion, five-year senior secured notes issue that will help fund capital purchases as well as a dividend for the state-run Venezuelan parent firm Petróleos de Venezuela. Price talk also emerged Tuesday for a $1 billion companion loan proposal.
Investors added to their holdings of junk bond funds for the first time in eight weeks, but they pulled money out of loan funds for the 27th consecutive week.
Today Platform announced the launch of an approximate $920 million multi-currency senior notes offering, one day after the Miami, Fla.-based company launched a proposed $1.1 billion loan facility through its MacDermid Inc. subsidiary.
According to S&P, the trailing 12-month speculative-grade corporate default rate decreased to 1.5% in December from 1.6% in November. It was the first month-to-month decline since the 1.4% rate was recorded in July, the lowest point of the default rate in 2014.
Global Knowledge Training, a newly acquired firm held by private equity firm Rhone Capital, has put forward a first- and second-lien loans proposal totaling $245 million, according to sources familiar with the deal.
More than a year after leading a $24.4 billion buyout of his namesake company, Dell founder and chief executive Michael Dell appears to be delivering on a plan to return the company to investment grade status.
Investors added $717 million to high yield bond ETFs the week ended Dec 24, but that was not enough to offset the $1.05 billion withdrawn from high yield bond mutual funds, according to Lipper. Loan mutual funds and ETFs, meanwhile, saw another $1.29 billion walk out the door.
Final rules requiring sponsors of securitizations to retain skin in the game were published in the Federal Register Wednesday. That means sponsors of collateralized loan obligations have exactly two years, until Dec. 24, 2016, to comply.
James Kern has decades of experience in the asset management industry with a focus in specialty finance. He currently serves as managing partner of Majestic Ventures 1, a consulting and investment partnership.