Well, I can’t say that the jobless claims number surprised me today, which came in at 500k, 24K more than expected by economists polled by Reuters. As a result the markets sold off at the open. Equities got a brief reprieve ahead of the Aug Philly Fed numbers as some bulls took bets that the numbers were going to exceed expectations, however they didn’t. The Philly Fed factory index fell to -7.7, well below the 7.0 that economists expected and down from 5.1 last month. The S&P finished the day at 1,075.63 (-1.69%) and the Dow ended at 10,271.21 (-1.39%).
The loan market was mixed today, even a tad heavy some would say, but overall in all it was just very quiet. LVS and FDC were active ahead of pay downs and Sinclair TV’s new TL broke for trading. Not much to say beyond that.
The Lipper FMI numbers came out a little bit ago and showed that both loans and high yields had inflows for the week ended August 18th. Loans beat out high yield with inflows of $64.648 million but down from $102.4 million last week. High yield had inflows of just $49.556 million, down from $574.811 million last week. Other notable flows were from Equity funds, which had a net outflow of $9.1 billion following a $502 million outflow last week. Investment grade funds had in inflow of $1.629 billion, double last weeks $880 million.
Tomorrow will be a sleeper as it is Friday and there are no major economic releases. Have a good night.
- Economic numbers point to darker outlook
- Intel looks to expand beyond PCs with McAfee buy
- Apparel "sticker shock" worries vendors, retailers
- More tough economic times forecast by CBO
- Sears disappoints, fails to lure bargain-hunters
- Jobless claims rise more than expected
- Douglas Elmendorf, Congress' budget watchdog
- BHP Potash bid likely to pass regulatory muster
- S&P may raise Potash Corp if BHP's bid succeeds
- Goldman Sachs sues Natixis in London High Court
- General Motors Co Wednesday filed for an initial public offering. GM filed for an IPO of $100 million, though this does not represent the full amount the company is seeking to raise as it takes a major step toward repaying the tax payer-funded bailout.
- Las Vegas Sands extended TLB continued to rise Thursday ahead of today's $1 billion paydown. The loan is quoted 93.5-93.875 pre-paydown. The extended loan was quoted 92.625-93 Friday after the company sealed lender approval of the amend-to-extend. In aggregate, about 75% of the company's outstanding $3.9 billion in term loans were extended. Las Vegas Sands will also a $1 billion cash paydown on the extended portion. Lenders agreed to extend $1.415 billion of the TLB by 2.5 years to November 2016 in exchange for an increase in spread to LIB+275. In addition, lenders agreed to extend $284.5 million in delayed draw I term loans to 2016 and $207.9 million in delayed draw II term loans to 2015. Approximately $980 million in term loans were not extended. That portion will continue pay LIB+175 and will mature in 2013 and 2014, consistent with the original terms of the loans.
- First Data Corp bank loan lenders are expected to receive the $500 million paydown on Friday. The paydown will be pro rata across all six of the First Data tranches. The company's TLB-1 is quoted 86-86.5, while the TLB-2 and TLB-3 are both 85.875-86.375. The Euro loan is currently 86 bid and the delayed-draw term loan is quoted 85-87. The revolver is quoted in an 80-85 range. Earlier this month, the company sold $510 million of senior secured first-lien notes due 2020 at 98.387 to yield 9.125%. The note sale came after the company amended its credit to allow the company to issue additional secured debt to pay down its term loans.
On the Break
- Sinclair Television Group's new $270 million term loan B allocated and broke for trading this morning. The loan is quoted 100-100.5 out of the box. The issuer previously cut pricing on the loan to LIB+400 from LIB+425. The 1.5% Libor floor and 99.5 OID remained unchanged. The loan benefits from 101 soft call protection. The facility is rated Ba1/BB, while the corporate family ratings are B1/B+. The JP Morgan-led loan will mature in October 2015 and will refinance existing debt. The new term loan, along with cash and/or a revolving credit, will be used to repay the company's existing $305 million TLB which also matures in October 2015. Sinclair Broadcast Group, currently owns and operates programs or provides sales services to 58 television stations in 35 markets.
- Bon-Ton Stores Inc today said fiscal 2Q10 comparable store sales increased 0.2%, and its quarterly operating loss fell to $6.4 million from $10.6 million in fiscal 2Q09. EBITDA increased to $21.3 million, compared to $19.3 million in the year earlier period.
- Fitch Ratings affirmed DaVita Inc's IDR at 'BB-'.
- EBG Holdings LLC, its principal operating unit Boston Generating LLC, and five other wholly owned units, collectively known as BostonGen, voluntarily filed for Chapter 11 in a bankruptcy court. The filing is part of a planned sale of five power plants to Constellation Energy. A Majority of the creditors of BostonGen's first-lien lenders have signed a sales support agreement.
- Standard & Poor's Ratings Services said today it lowered its ratings on Boston Generating LLC's billion first-lien term bank loan, first-lien letter of credit, and first-lien revolver (all due in 2013) to 'D' from 'CC' following its bankruptcy filing. The recovery rating is '1', indicating that lenders can expect a very high recovery (90% to 100%) in the event of payment default.
- Moody's Investors Service affirmed its ratings for Windstream Corp including its Ba2 Corporate Family and Probability of Default Ratings on plans to acquire Q-Comm Corporation. The proposed transaction is not expected to materially alter Windstream's operating and credit profile, though its adjusted Debt/EBITDA leverage is expected to remain elevated for the rating category at about 3.8x over the next two years, Moody's said.
- PRICED: Mueller Water Products Inc (NYSE:MWA) USD225m 144A sr notes due 9/1/20 (10y). NC5. B1/B+ (stable/stable). Via BAML/GS joint books, JPM, STI, WFS as co- managers. Wreg rights. 8.75% at 98.37, yld 9.00%. T+643bp vs 2.625% 8/15/20. Del 8/26 (T+5). CUSIP: 624758AC2.
What to Watch Tomorrow
- Hub International Ltd. Q2 earnings, conference call 12 p.m. ET
- NO SCHEDULED ECONOMIC RELEASES
16th Annual Thomson Reuters LPC Loan Conference
Wednesday September 22, 2010
Marriott Marquis, New York City
Wednesday September 22, 2010
Marriott Marquis, New York City
Now in its 16th year, the Thomson Reuters LPC Loan Conference has become one of the industry's premiere annual events. Join investors, lenders, financial sponsors and treasurers as they discuss the outlook for a continually evolving loan market.
Click Here to view our detailed agenda and to access registration information.