Wednesday, March 4, 2015
- 1) The credit facility has been converted to unsecured from secured; 2) The maximum borrowing size has been boosted to $300M from $250M, and could go as high as $450M; 3) The interest rate has been cut to Libor plus 1.55-2.30%.
- Source: Press Release
- Punished after a sizable earnings miss last week, Hercules Technology Growth Capital (NYSE:HTGC) announces a $50M share buyback program.
- At today's closing price, it would be good for about 5.4% of the float.
- Investors aren't impressed (so far), with shares lower by 0.3% after hours.
- Source: Press release
- Previously: Hercules Technology Growth Capital misses by $0.04, misses on revenue (March 2)
4:23 PM| Comment!
- The underwriter greenshoe could boost the offering by another 1.5M shares.
- Source: Press Release
- ARI flat after hours.
- Previously: $1.5M insider buy at Apollo Commercial Real Estate (March 4)
3:52 PM| Comment!
3:48 PM| Comment!
- M&T Bank (MTB -0.3%) announced the agreement to purchase Hudson City Bancorp (HCBK) nearly three years ago, but the regulatory green-light has been on hold pending approval of the banks' anti-money-laundering compliance program.
- While the stress test and CCAR have nothing to do with money-laundering compliance, analyst Marty Mosby suspects if both banks' capital plans are approved, then a merger approval isn't far behind.
- The current deadline for a closing is April 30.
- The stress tests results are due after the close on Thursday, with the CCAR results six days later.
- Executive vice chairman of Bank of America's (NYSE:BAC) investment bank, Harry McMahon has resigned, according to a memo from COO Thomas Montag. McMahon advised on more than 300 deals during his career, according to a 2009 memo announcing his promotion to executive vice chairman.
- McMahon's exit makes at least three senior BofA execs with long ties to Merrill Lynch who have departed Montag's division since bonuses were paid last month.
- "In our view, Radian's (RDN +1.1%) earnings and returns will improve over the next several years as its legacy portfolio becomes a smaller portion of its overall portfolio of risk," says MKM, initiating Radian Group (RDN +1.1%) with a Buy rating and $22 price target.
- "Since the credit crisis, the private mortgage insurance industry has become very attractive," says the team, noting home values are still on the rise, premium rates are nearly double that of pre-crisis, and required capital is up just 30-40%, even though they're likely to move higher following new FHFA rules.
- MKM also starts coverage on MGIC Investment (MTG -0.4%) with a Buy and Essent (ESNT +2.1%) with a Neutral.
- Previously: Essent Group higher after analyst upgrade (March 4)
- Janus' (NYSE:JNS) first proposed fund would look like an ETF version of Bill Gross' Janus Global Unconstrained Bond Fund (MUTF:JUCAX), much in the way that Pimco about three years ago launched BOND as the ETF version of Gross' Total Return Fund.
- BOND has been particularly successful, with AUM of $2.5B (though perhaps that total has suffered since Gross exited Pimco). Last month, DoubleLine also paired its star and star fund with an ETF, launching (along with State Street) the Jeff Gundlach-managed SPDR DoubleLine Total Return Tactical ETF (NYSEARCA:TOTL).
- Not long after Citigroup (C) CEO Michael Corbat sent out invitations last spring for the retirement party for former head of Citibank, Gene McQuade, he was asking McQaude to take the most important job at the bank - making sure it passes this year's stress test and CCAR.
- McQuade grew up in NYC housing projects, reports Christina Rexrode in the WSJ, put himself through college driving a taxi, and - well-liked by both regulators and bankers - has earned a reputation as a go-to person for managing a crisis.
- “He’s absolutely the person you want in a conflict situation where the stakes are high. Smart, ethical, keeps his cool,” says Dick Kearns, who served with McQuade as a trustee at St. Bonaventure during a 2003 recruiting controversy. "If he were an airline pilot, he'd be Sully Sullenberger."
- Under McQuade, Citi this year has renovated risk models, hired more compliance staff, and attempted to address a Fed complaint that risk procedures are too centralized at HQ.
- "We really need to turn this into an A-plus paper," McQuade tells his colleagues.
- Stress test results are due after the close on Thursday, with the CCAR results six days later.
- Anu Aiyengar and Henry Gosebruch have been named co-heads of M&A for North America, while Dirk Albersmeier and David Lomer have been tapped as co-heads of M&A in EMEA, reports the WSJ.
- "In this time of unprecedented M&A activity, we are making changes to our organization structure to better align our regional M&A resources in support of our client agenda,” say JPMorgan (JPM -0.2%) co-heads of global M&A Hernan Cristerna and Chris Ventresca.
- The bank currently holds first place in Dealogic's league table for U.S.-announced M&A year-to-date, with 26 deals worth a combined $94B.
- According to a tweet from CNBC, JPMorgan (JPM -0.5%) and Goldman Sachs (GS -0.8%) have won dismissal of U.S. aluminum price-fixing lawsuits.
- An earlier story, had a U.S. judge also throwing out claims against the LME and Glencore.
- Previously: Goldman, JPMorgan seek dismissal of aluminum price-fixing suits (April 23, 2014)
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