The equity markets opened up weaker as the homes sales data yesterday gave another reason for the world to fear that the U.S. recovery was slowing. Overnight Ireland had its rating cut which got people thinking, who is next? This morning the durable goods numbers where less than expected and the new home sales data disappointed, giving investors even more reason to doubt a successful recovery, pushing the Dow below 10,000. However, the market corrected itself amid speculation that the market has oversold. Both the Dow and the S&P 500 ended their losing streaks today and closed higher at 10,060.06 (+0.20%) and 1,055.33 (+0.33%) respectively.
The loan market was heavier today with flow names down around a quarter to half of a point and off-the-run paper was quoted about an eighth lower. Oriental Trading’s term loans fell after the company filed for bankruptcy. In all, there were very few sellers out there, but those that are have not been having problems finding buyers. Tomorrow, the jobless claims number will be in focus and will dictate the markets direction. Have a good night and try to stay positive, the great hunt for yield continues.
- US July new home sales sag, durables orders soft
- US shareholders get more power over boards
- Global outlook casts shadow over Fed retreat
- Technicals help Wall St make comeback
- General Growth Properties Inc said in a regulatory filing on Wednesday the development company it plans to spin off when it emerges from bankruptcy will be run initially by three Brookfield executives. General Growth said the company -- which is still unnamed and called Spinco -- would be headed by David Arthur as Chief Executive Officer. He is currently Brookfield's Real Estate Opportunity Fund CEO. The commercial real estate company plans to emerge from bankruptcy this fall as two companies. General Growth will hold its prize assets, while Spinco will be the owner of other long-term development projects such as South Street Seaport in Manhattan and 7,000 acres in the master-planned community of Summerlin, Nevada.
- Oriental Trading's loans declined after the issuer filed for Chapter 11 bankruptcy protection. The first-lien slipped to 83.5 bid, down from the 85 context, and the second-lien loan slipped to 1.5 bid. First-lien lenders will receive 100% of the reorganized company and a new $200 million loan, according to published reports. Oriental Trading entered into a $410 million first-lien term loan and $180 million second-lien loan in 2006 to back its roughly $1 billion sale to the Carlyle Group by Brentwood. Based in Omaha, Neb., Oriental Trading sells novelties, party supplies, toys, crafts and home decor products through its Web sites and catalogs including Oriental Trading, Terry's Village, Sensational Crafts and Inspirations.
On the Break
- Airvana's new $360 million term loan is trading 99-99.5 today after breaking late yesterday. The facility was previously increased by $30 million and pricing firmed at LIB+900 with a 2% Libor floor and a 98 OID. Jefferies, Macquarie and SG lead the deal. Airvana is a provider of mobile-broadband-network infrastructure products.
- Pricing on EVERTEC's $350 million term loan has been lifted to LIB+525 with a 1.75% Libor floor and a 97 OID. Earlier, price talk on the facility was LIB+475 with a 1.5% Libor floor and a 98 OID. The corporate family rating is B2, while the facility rating is Ba3. Bank of America Merrill Lynch and Morgan Stanley lead the $400 million loan backing Apollo Management's acquisition of a 51% stake in EVERTEC, a subsidiary of Popular Inc. The loan also includes a $50 million revolving credit facility. The company will also raise $225 million in senior unsecured notes. The equity injection will be $165.75 million, according to a previous SEC filing. The new joint venture is valued at $900 million. Popular will retain a 49% stake in EVERTEC. Popular Inc is the leading banking institution by both assets and deposits in Puerto Rico and ranks 34th by assets among U.S. banks. Popular provides processing technology services through its processing subsidiary EVERTEC, which processes approximately 1.1 billion transactions annually in the Caribbean and Latin America.
- Lenders to Univar have formed a blocking group constituting 61% of existing loan holders ahead of Thursday's deadline to approve an amendment proposed by the company's private equity sponsor CVC Capital Partners. CVC asked lenders to extend existing debt and approve a new $300 million loan as it readies a 49 percent stake sale to an additional unidentified sponsor. The stake is expected to be sold to another private equity firm, one of Univar's institutional investors said. CVC is expected to use the new $300 million loan to pay itself a dividend, the investor said. Existing lenders are being asked to approve the amendment without knowing the identity of the new sponsor and are not able to join the new loan as it has reportedly already been offered to investors of the incoming private equity shop. That the sponsor would ask lenders to approve the amendment and new loan, which would increase the company's leverage, without communicating the identity of the potential buyer is highly unusual, the investor said. Lenders are being asked to extend the maturity of an existing $2.35 billion loan which backed CVC's buyout of the global chemicals distributor in 2007 in return for higher pricing and a Libor floor. Bank of America Merrill Lynch led the deal.
- Delta Air Lines, Inc. today announced that as a part of its ongoing efforts to reduce the company's debt levels it has commenced cash tender offers to purchase certain specified series of outstanding Pass Through Certificates and its 11.75% Senior Second Lien Notes due 2015.
- Pemex has launched an upsized USD1bn retap of its 6.625% June 15 2035 at 5.975%, at the tight end of 6% area guidance. Pricing is expected later today. At that size, the retap will bring the outstanding amount to USD2.747bn. The bond is being sold under a 144A/RegS format with reg rights. Ratings are Baa1/BBB/BBB. Proceeds are being used to finance the company's investment program, for working capital needs and for debt refinancing. Bank of America Merrill Lynch and Credit Suisse are joint bookrunners.
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.
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