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  • Syndicated Loan Market Commentary 08/02/2010
    Overnight Asian equities rallied after strong manufacturing numbers out of China and Australia. Europe was on fire, moving up close three-percent, after HSBC and BNP posted strong earnings helping renew optimism over their debt issues. The U.S. was two percent higher at the open on sentiment from abroad and investor’s willingness to take on risk, once again.  Equities maintain their early morning gains to close up two-percent; the Dow closed at 10,674.38 (+1.99%) and the S&P finished at 1,1225.86 (+2.2%).
    In the loan market, the LCDX 14 came out of the gate at 96 ¾ - 97 (+3/8) and soon moved up to 96 15/16 – 97 3/8 (+9/16), where is stayed for the rest of the day. High beta names firmed with equities by a quarter of a point, influenced by equities. Off-the-run paper was also pretty active moving up by around the same amount. Trading volumes were modest as the market was largely distracted by the growing high yield calendar, which added 8 deals today, many whose proceeds were to repay bank debt. With spreads tightening across the credit spectrum, we should see the revival of the bond-for-loan take-outs, making this a very attractive time to get involved in bank loans, as technical’s will likely move prices up a buck or two, maybe more.   
    • U.S. manufacturing slows in July for 3rd month   
    • Bernanke says economy still short of full recovery
    • China slows to cruising speed, Europe perks up   
    • Obama says U.S. economy has to grow fasterà Hmmm, Got Stimulus?
    • Output grows in U.S., Euro zone; China slows     
    • HSBC, BNP profits beat view after bad debts tumble
    • Geithner aims to calm Wall Street on finance rules
    • Oil hits near 3-month high on economic optimism  
    • Ford Motor Co today announced it has completed the sale of Volvo Car Corp and related assets to the Zhejiang Geely Holding Group Company Ltd. The total purchase price was $1.8 billion. The deal was signed in March 2010. Also, Standard & Poor's upgraded the issuer's corporate credit rating by two notched to B+ and its senior secured rating four notches to BB, citing improved business profile. The issuer's revolver is currently 92.25-93.5, the TLB-1 is 97.5-98.25 and the TLB-2 is 97-97.75
    • A group of creditors has requested that the hearing to approve Tribune Co's plan of reorganization be delayed at least three months to give it more time to digest a 1,000-page report by a court-appointed examiner, according to court documents. The creditors requested a delay of at least 90 days, which could push the bankruptcy beyond the two-year mark. The agent for a $1.6 billion loan said in a Friday filing that it was unrealistic to stick to the Aug. 30 scheduled start of hearings to confirm the reorganization of the publisher of the Chicago Tribune and Los Angeles Times. Tribune filed for bankruptcy in 2008, a year after real estate developer Sam Zell led a buyout that saddled the company with debt. The company, which also owns TV stations and other properties, has proposed turning ownership over to lenders with about $8.7 billion of claims. In return for ending potential legal fights, the company has proposed giving senior bondholders about $450 million. The examiner's report found that billions of dollars of high-priority loan claims against Tribune could potentially be voided as could approximately $4 billion in payments made to shareholders in 2007, according to the bridge agent. Voiding those claims would increase the potential recovery for the holders of the bridge loan. The case is In re: Tribune Co et al, U.S. Bankruptcy Court, District of Delaware, No. 08-13141.
    • Chemtura Corp is seeking court approval to amend its DIP loan credit agreement, secure up to $750 million in additional exit financing and pay related fees, according to papers filed Friday. In the court filing, Chemtura outlines a proposed $275 million senior secured asset-based revolving credit facility. Proceeds are to refinance the DIP loan agreement. Bank of America Merrill Lynch and Wells Fargo are joint lead arrangers on the deal. The company seeks to enter into a senior secured or unsecured term loan facility and/or the issuance of secured or unsecured notes, which together would equal, in aggregate, a principal amount of up to $750 million. Bank of America leads the term loan facility and Citi leads the notes portion of the financing, according to the filing.
    New Issue
    • Goldman Sachs is launching tomorrow the financing backing Griffon Corp's $542 million acquisition of Ames True Temper (NYSE:ATT) from Castle Harlan Partners. The financing will include a $150 million asset-based facility and a $500 million term loan. In addition, Griffon will provide $75 million in cash. The combined assets of ATT and Griffon's Clopay Building Products and Performance Plastics subsidiaries will secure the borrowings under the financing commitments. Griffon expects to have cash in excess of $200 million available for general corporate purposes after the completion of the deal. Griffon currently conducts its operations through Telephonics Corporation, Clopay Building Products Company and Clopay Plastic Products Company.
    • Standard & Poor's Ratings Services today said it has raised its corporate credit rating on Ford Motor Co. and Ford Motor Credit Co. LLC to 'B+' from 'B-'. We also raised the counterparty credit rating on FCE Bank PLC, Ford Credit's European bank, to 'BB-' from 'B', maintaining the one-notch rating differential between FCE and its parent. The rating outlook on all entities is positive. At the same time, we raised the issue-level rating on Ford's senior secured debt issues to 'BB' from 'B-' and revised the recovery rating on this debt to '1' from '3', indicating our expectation that lenders would receive very high (90% to 100%) recovery in the event of a payment default. We also raised the issue-level rating on Ford's unsecured debt to 'B' from 'CCC' and revised the recovery rating on this debt to '5' from '6', indicating our expectation that lenders would receive modest (10% to 30%) recovery.
    • Moody's Investors Service today assigned a B2 Corporate Family Rating and Probability of Default Rating to Strategic Partners Inc. ("SPI") and a B1 rating to the company's proposed secured credit facilities. The ratings assigned are based on terms and conditions of the financing as advised to Moody's. The rating outlook is stable. SPI's B2 Corporate Family Rating reflects the company's high pro forma financial leverage, with debt/EBITDA at around 5 times following its acquisition by an investor group primarily comprised of BAML Capital Partners and SPI's management. The rating also reflects the company's limited scale and focus on a narrow product category (medical uniforms).
    • TXU Corp's reported 2Q10 adjusted operating results from competitive business improved $4 million from 2Q09. Adjusted (non-GAAP) operating results totaled a net loss of $251 million compared to a net loss of $248 million in 2Q09. The company said the consolidated net loss attributable to EFH Corp (in accordance with GAAP) was $426 million compared to a net loss of $155 million in 2Q09. The B1/B2 loans are currently 77.75-78, up from 77.375 bid Friday. The B3 loan rose about 12.5bp to 77.25-78.
    • Oshkosh Corp posted a fiscal Q3 profit of $211.2 million, or $2.31 per share, for the quarter ended on June 30, compared with a year-earlier loss of $26.6 million, or 36 cents a share. Revenue doubled to $2.44 billion.
    • NRG Energy Inc reported 2Q net income of $210 million, or 81 cents per share, compared with $432 million, or $1.56 per share, a year ago. The company raised its 2010 adjusted EBITDA outlook to a range of $2.45 billion to $2.55 billion from its earlier forecast of $2.20 billion, excluding mark-to-market.
    Preliminary Results
    • EnergySolutions Inc today announced preliminary financial results for the quarter ended June 30, 2010. It estimates that quarterly revenues will be between $385 million and $405 million and that its net loss for the quarter (including a non-cash goodwill impairment charge) will be between $28 million and $30 million ($0.32 to $0.34 per share).
    High Yield
    • DCP LLC/DCP Corp (Dick Clark Productions) USD150m 144A sr sec 1st lien notes due 2015 (5y). NC3. Expected single-B ratings. Via BAML books, STI as co- manager. UOP: repay bank debt, fund distribution to the parent company.
    • Foresight Energy LLC USD400m 144A sr notes due 2017 (7y). NC4. Caa1/(B- expected). Via Citi/MS/UBS/CA. Roadshow 08/02-05. Pricing 08/06. UOP: repay debt.
    • Price talk of 10.25%-10.50% is out on Trilogy International Partners LLC/Trilogy International Finance Inc USD370m 144A/Reg S sr sec notes due 2016 (6y). NC3. Rated Caa1/CCC+ (stable/stable). Via GS/DB/JPM joint books. No reg rights. Books close 11am tomorrow. Pricing tomorrow afternoon.
    • Five-B Expedia USD750m 144A/Reg S 10y Sr Unsec @T+300bp PRICED:USD750m 5.95% 8/15/20. At 99.893, yld 5.964%. T+300bp. Settle 8/5 (T+3). MWC T+50. Upsized from $500m. Expedia Inc "EXPE" Ba1/BBB-/BBB- (pos/s/s) USD500m 144A (with rr)/Reg S 10y sr unsec notes. BofAML/JPM (active)/Barc/BNP/RBS (passive) joint books. CoC put at 101. Pricing today. Settle T+3.. UOP: general corporate purposes, including, without limitation, repurchases of its common stock and future acquisitions by it or any of its subsidiaries.
    • Continental Airlines Inc (NYSE:CAL) USD750m 144A/Reg S sr sec first lien notes due 2015. NC2. Ba2/BB-. JPM/CS/MS joint books, Citi, GS, UBS joint leads, CA- CIB, DB as co-managers. No reg rights. Roadshow 08/02-05. UOP: USD350m to repay sr sec term loan, GCP. Biz: a major US air carrier. HQ: Houston, TX.
    • Newell Rubbermaid Baa3/BBB-/BBB (s/s/neg) USD550m (will not grow) SEC registered 10y sr notes. Barc/Citi/GS joint books. Co-mgrs: BNP, MUS, CS. CoC put at 101. UOP: purchase 2019 Notes pursuant to the 2019 tender offer. To purchase shares of Newell Rubbermaid common stock in anticipation of the issuance of common stock pursuant to the Proposed Exchange Offer; General corporate purposes, which may include the repayment of debt.
    • Rock Holdings Inc (Parent of Quicken Loans and Title Source) USD300m 144A sr sec notes due 2015 (5y). NC3. Via CS/JPM joint books. No reg rights. Roadshow starts tomorrow. Pricing 08/09. UOP: fund distribution to shareholders, GCP. Biz: online retail mtg lender, title insurance and closing services. HQ: Livonia, MI.
    • Price talk of 7.375% area is out on Arch Coal Inc (NYSE:ACI) USD500m SEC registered sr notes due 2020 (10y). NC5 (MWC T+50bp). Equity claw: 3y 35%. B1/BB- . Via BAML/MS/JPM joint books. PNC lead manager, BMO, CA, RBS, USB sr co- managers, Barc, FBR, RJames, Simmons, Stifel, UBS as co-managers. Off the shelf. Books closed at 1pm. Pricing this afternoon.
    16th Annual Thomson Reuters LPC Loan Conference
    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.
    Aug 02 5:37 PM | Link | Comment!
  • Leveraged Loan Market Commentary 07/30/2010
    Overnight, Asia was flat and the weakness continued in Europe after German retail sales fell more than expected and UK consumer confidence fell to its lowest since August 2009. Moody’s also made headlines saying that they are likely to downgrade Spain, but that really is a non-event, S&P downgraded them a year and a half ago. However, they called out the U.S. saying that we need to have a “clear plan” to address our deficits. Also in Europe, people are taking off positions and going on vacation, as August is vacation month in the EU. Futures in the US pointed to a lower open after the GDP number came in less than expected. However, at 9:45 am the Chicago PMI numbers came in much better than expected showing that business activity picked up. Also, the University of Michigan consumer sentiment came in higher than expected moving equities back toward unchanged at the end of the day.
    In the loan market we opened up slightly weaker and flow names came out an eight to a quarter lower. The LCDX 14 was first seen at 96 ¼ - 96 ½ (-1/4). It seems that some people have been lightening up on some older vintage paper to get involved in the calendar. Also, profit taking has continued is some of the higher dollar paper. Today we saw Savvis and NTELOS new term loans break for trading. But, weak earnings out of Calpine came as a surprise and their term loan traded down. Also, Warner Chilcott’s term loan was weaker after announcing an amendment to allow for a $2.15 billion special dividend. But, today wasn’t all bad LVS firmed up after launching an amendment that will allow for the company to paydown $750 million in debt, and will give existing holders a 75bps bump in coupon. Overall the market was mixed with names trading up or down a quarter point. The LCDX 14 finished the day where it started. Have a great weekend.
    • European shares fall for 3rd day; focus on US GDP
    • Spain may lose its Aaa credit rating à caused a stir, but S&P shed Spain’s AAA rating over a year and a half ago
    • Moody’s says U.S. needs a “clear plan” to address deficits
    • Imports slow US Q2 GDP growthà Can discount these number as manufacturing data paints a different picture
    • Wall St pares losses, recovery stays anemic
    • China overtakes Japan as No.2 economy
    • Freescale Said to Plan Filing for Public Offering by Year-End à BBerg was 9 days late on breaking this story…..old news
    • Calpine Corp posted a surprise quarterly loss of $115 million, down from $78 million a year ago, on lower commodity margins. However, the company slightly raised the lower end of its prior full-year adjusted EBITDA view to $1.65 billion to $1.73 billion. It had earlier forecast $1.63 billion to $1.73 billion. Their loan declined about 50bp to 94.5-95. Regal Entertainment Group posted a lower second-quarter profit. The company reported 2Q net income of $4.8 million, or 3 cents a share, compared with $40.5 million, or 26 cents a share a year earlier. The company said adjusted earnings excluding the loss on extinguishing debt came to 12 cents per share.
    On the Break
    • Savvis Inc's new $550 million term loan is trading 98.25-98.75 after breaking this morning. Pricing on the six-year term loan was flexed up to LIB+500 from LIB+475 and the OID firmed at 97 from talk of 97-98. A 1.75% Libor floor remained unchanged. There is also 101 soft call protection. Bank of America Merrill Lynch, Morgan Stanley, Credit Suisse and SunTrust leads the $625 million refinancing loan, which also includes a $75 million revolving credit facility due 2014. The corporate family and facility ratings are B1. Proceeds, along with cash on hand, will be used to refinance its $345 million, 3% convertible notes due 2012 and amounts under its existing $150 million revolver.
    • NTELOS $125 million incremental term loan broke for trading this afternoon, trading up 37.5bp on the bid side. The loan is currently quoted 100.125-100.625. It was sold at 99.75. JP Morgan is leading the deal. Pricing remains at LIB+375 with a 2% floor, in line with the existing deal.
    • Warner Chilcott said it intends to enter into $2.25 billion in new debt to fund a special dividend of $2.15 billion to the company's shareholders. The new debt will consist of senior secured term loans and unsecured debt, the company said in a release. The dividend recapitalization is conditioned on the amendment of the company's existing senior secured credit to allow for the additional debt. Their term loan eased a half a point on the news to 99.25/100.
    • Energy Future Holdings (TXU) today announced the early results of its bond exchange offers. $4.47 billion of old notes, were tendered (99.51%). The requsite consents have also been received.
    • Following this week's bankruptcy filing by American Safety Razor, S&P's year-to-date 2010 global corporate default tally rose to 46, the rating agency said today.
    New Issue
    • NTELOS is expected to allocate today its $125 million incremental term loan after reducing the discount to 99.75 from 99.5. JP Morgan is leading the deal. Pricing remains at LIB+375 with a 2% floor, in line with the existing deal. The company plans to finance its $170 million acquisition of MountainTelecommunications, One Communications Corp's FiberNet business, with the incremental term loan. The takeover will also be funded with revolver borrowings and cash on hand. Closing of the term loan is expected during the third quarter of the year. The pay down piece applies only to those who extend 2.5 years. Approximately $900 million of the amount outstanding would not be extended.
    • Las Vegas Sands today launched an amendment to its $5 billion credit facility seeking to pay down $750 million of the outstanding $3.9 billion, and extend approximately $2.25 billion for 2.5-years. Lenders who extend would receive a 75bp bump in coupon to LIB+250bp. Consenting lenders would also receive a 10bp amendment fee. The amendment requires 50% approval from lenders to pass. Following the completion of the transaction, a one notch upgrade is likely from Moody's.
    • Nielsen Holdings' lenders agreed to extend an additional $1.5 billion of the company's term loan due 2013 by three years to May 2016, the company said in an SEC filing. In exchange for the extension, pricing on the extended loan will rise by 150bp to LIB+375. Pricing, however, can decrease by up to 50bp, depending on leverage and ratings, according to the filing. The extension is expected to close in early August.
    • Fitch Ratings upgraded Tenneco Inc's Issuer Default Rating to BB- from B+.
    • Moody's Investors Service affirmed the ratings of Warner Chilcott Company LLC, Warner Chilcott Corporation, and WC Luxco S.a r.l. (subsidiaries of Warner Chilcott plc, collectively referred to as "Warner Chilcott"). The affirmed ratings include the B1 Corporate Family Rating, the B1 rating on the company's senior secured credit facilities and the SGL-1 speculative grade liquidity rating. Following this rating action, the outlook remains stable. The rating affirmation follows Warner Chilcott's announcement of a special $2.15 billion shareholder dividend, to be funded with $2.25 billion of new debt. The new debt may include both senior secured bank debt and unsecured debt. Completion of the transaction may occur by September 30, 2010, and is subject to waivers on existing bank debt.
    • Moody's Investors Service assigned a B3 rating to Vertis' proposed $425 million senior secured first-out term loan and a Caa2 rating to its proposed $150 million senior secured last-out term loan, both due 2015. Based on the proposed revised debt structure, these new term loans will be issued in place of the previously proposed Senior Secured Bank Credit Facility and Senior Secured Regular Bond/Debenture, which each had been rated B3 in April 2010, and the ratings for which have now been withdrawn. All other ratings remain unchanged and the rating outlook remains stable, as outlined below.
    • Moody's Investors Service has placed all ratings of Pierre Foods Inc (Pierre), including the B2 corporate family rating, on review for possible downgrade. The ratings actions respond tothe announcement that the Boards of Directors of Pierre, Advance Food Company, Inc. and Advance Brands, LLC (not rated by Moody's) have approved and entered into a definitive merger agreement. Terms of the merger agreement have not been disclosed. The transaction is subject to customary closing conditions and is expected to close in the third calendar quarter. Conclusion of this review is expected to coincide with the closing of the merger.
    High Yield
    • Mylan Inc (NASDAQ:MYL) USD300m 144A add-on to its 7.875% sr notes due 07/15/20. MWC T+50bp until 07/15/15, then at 103.938, 102.625, 100. Equity claw: 35% at 107.875 until 07/15/13. B1/BB- (positive/stable). Via GS. Priced at 105.50. 7.089% yield. Del 08/13 (T+10) w/AI from 05/19/10. 144A
    Jul 30 5:16 PM | Link | Comment!
  • Leverage Loan Market Commentary 07/29/2010
    The loan market was mixed with a slight positive bias today but was very active. This morning we had bids due on the $136 million BWIC, earnings releases from Univision, HCA, Community Health, and Revlon, as well as two new issues breaking for trading (Cedar Fair and inVentive). It was also a very news heavy day and much of the trading revolved around those names. Only 42% of the names in the BWIC traded, which only accounted for $39 million as the seller received a lot of low ball bids. Earnings were mostly positive and helped push some names higher. Both new issues traded atop their OID’s on strong demand in the secondary. The LCDX 14 followed equities today and was up as high as 96 7/8 – 97 1/8 (+1/2) but pared the early market gains to move back to 96 3/8 -96 5/8 (Unch) where it stayed for the rest of the day. Loan market mutual funds saw inflows of close to $100 million, making it the fourth straight week of inflows. High yield mutual funds had inflows of $946 million, up from $700 million last week. With history as a guide, tomorrow should be rather light. Have a good night.
    • Europe CDS extend rally on upbeat Q2 results  
    • Buyout surge to test European leveraged loan market
    • German adj unemployment falls for 13th month     
    • Tribune report sealed; bankruptcy plan called dead
    • Cautious funds grab corp debt for yield à Party on    
    • U.S. unemployment claims fall, but still elevated à 457K v. 459K expected
    • Stocks slide on recovery doubts; euro gains       
    • Markets pare some losses, techs still drag       
    • Small business lending plan blocked in U.S. Senate
    • Sanofi's Genzyme bid expected in days
    • Rep. Frank-US govt should cut Fannie, Freddie ties  à Ahh, the Boogie Man. This should be interesting.
    • Avis Budget Group has tapped Citi and Morgan Stanley to provide the fully committed financing that will back the cash portion of its bid for Dollar Thrifty. Avis will complement the offer with available cash. In an unsolicited proposal, Avis has offered to pay $46.5 a share of Dollar Thrifty common stock consisting of $39.25 in cash. This will include proceeds of a pre-closing special dividend to be paid by Dollar Thrifty and 0.6543 shares of Avis Budget stock currently valued at $7.25. Dollar Thrifty and Hertz Global Holdings entered into a definitive merger agreement. Dollar Thrifty has scheduled a shareholder meeting to vote on the Hertz acquisition on August 13. Dollar Thrifty has said its board of directors will review and consider the Avis transaction.
    • Nuveen Investments' first-lien term loan advanced more than three points today after the company said it was acquiring the long-term asset business of U.S. Bancorp's FAF Advisors. The loan rose from 85 to 88.25-89 today. The transaction is expected to have a net deleveraging effect on Nuveen. Standard & Poor's said the company's B- rating is not expected to be affected by the acquisition. "The transaction is being conservatively financed with on-balance-sheet cash and common stock, whereby U.S. Bancorp will have a 9.5% stake in Nuveen," S&P said. "As a result, debt leverage, which has been extremely high at Nuveen and has been a major factor in the ratings, should decline slightly." Chicago-based Nuveen is a provider of diversified investment services to institutional and high-net worth investors.
    • Light primary CLO issuance in 2010 (only three deals have publicly come to market in the U.S.) has been insufficient to offset the roll-off of legacy CLO, according to Fitch's latest U.S. Leveraged Finance Quarterly. As a result, the outstanding balance of U.S. CLOs is on the decline. The purchasing power of legacy CLOs is further diminished as issuers exit their reinvestment period and begin to amortize. The declining balance of U.S. CLOs will accelerate the longer primary CLO issuance remains dormant, Fitch says. CLOs have experienced relatively stable performance over the last quarter with U.S. high yield defaults running at less than 1% for the year and recoveries rebounding from the lows observed in the first half of 2009. Portfolio credit quality has improved on a weighted average basis, returning to a strong 'B/B+' profile from 'B/B-' earlier in 2010. Additionally, Fitch analysts say that issuers are also experiencing a reduction in assets rated 'CCC' and below, which has had positive effects on overcollateralization (NYSE:OC) test cushions as a result of smaller excess 'CCC' assets. Relatively stable secondary market prices have also contributed to improved OC coverage due to the dampened effect of the discount securities threshold and excess 'CCC' haircuts.  
    • LNR Property's loan rose about a point to 96-98 today on news the company's equity sponsors agreed to make a $442 million equity contribution and pay down about half of the company's first-lien loan. The transaction will cure a technical default and put the company back within its covenants. Goldman Sachs and Bank of America Merrill Lynch were leading the proposed $445 million refinancing loan.
    • A little less than half of the names in the $136 million cash loan BWIC traded today, totaling about 29 percent of the dollar amount. Bids for the loans that did not trade were below the seller's desired selling price.
    • Las Vegas Sands TLB bounced around today as expectations differed among investors as to the terms of the company's amendment to its $5 billion credit facility, which is expected to launch tomorrow. The loan opened the day at 93.25-93.5 before dipping to 92.5-93. It has since recovered, coming back to 93-93.5. Some investors anticipate the company will offer straight yield, or a price bump, in exchange for extending the maturity. Some investors anticipate the company will offer straight yield, or a price bump, in exchange for extending the maturity. Others take the view that Las Vegas Sands will opt for a smaller price bump combined with paying down 15% to 20% of the loan with cash on hand
    • An examiner's report that found dishonesty in Tribune Co's leveraged buyout will remain under wraps until at least next week, a bankruptcy judge ruled on Thursday, as creditors declared the company's reorganization dead. Judge Kevin Carey of the U.S. Bankruptcy Court in Delaware also said he would consider extending the Aug. 6 deadline to vote on the company's reorganization. Such a ruling would come at a hearing he scheduled for Tuesday. The examiner, UCLA Law School professor Kenneth Klee, released a 20-page summary on Monday and said the court needed to resolve claims of confidentiality before unsealing the full 1,100-page report. The report concluded Tribune did not act forthrightly in getting an independent opinion about the company's solvency. The report also found a court was somewhat likely to find part of the $8.2 billion leveraged buyout that put developer Sam Zell in control of the Chicago Tribune and Los Angeles Times owner constituted intentional fraudulent transfers.
    • Community Health Systems' strip is relatively unchanged at 94.75-95.25 this morning after the company posted a rise in profitability, sales and EBITDA. The company said operating revenue rose 5.1% in 2Q10 to $3.2 billion. Adjusted EBITDA in the quarter was $443.1 million, up from $415.6 million in the year-earlier period. CHS, headquartered in Brentwood, Tenn., is a provider of general hospital healthcare services.
    • Univision Communications' loan is up more than a point to 88-88.5 today after the company reported a 23% rise in 2Q10 revenue and a 20% rise in 2Q10 OIBDA. The company said net revenue rose to $639.8 million in the quarter from $519.5 million last year. Adjusted operating income before depreciation and amortization rose to $272 million from $226.6 million a year ago. The company said that during the quarter, the 2010 FIFA World Cup contributed between $73.6 million and $74.8 million in incremental net revenue and between $3.9 million and $4.9 million in OIBDA.
    • Revlon Inc today said 2Q10 net sales were $327.7 million compared to $321.8 million in the year earlier period. Operating income was $47.3 million compared to $26.6 million in 2Q09 and net income was $16.4 million, or $0.31 per diluted share, compared to $0.2 million, or nil per diluted share.
    • Goodyear said 2Q10 sales rose 15% to $4.5 billion. Net income was $28 million, or 11 cents per share, compared with a loss of $221 million, or 92 cents per share, in 2Q09.
    • The McClatchy Co today reported 2Q10 net income of $7.3 million, or 9 cents per share. Adjusted earnings, excluding items, were $8.6 million, or 10 cents per share.
    • Dana Holding Corp today reported 2Q10 net income of $9 million, compared to break-even net income one year ago. Second-quarter adjusted EBITDA was $154 million, a substantial improvement over the $94 million reported 2Q09.
    • Community Health Systems said operating revenue rose 5.1% in 2Q10 to $3.2 billion. Adjusted EBITDA in the quarter was $443.1 million, up from $415.6 million in the year-earlier period..
    • HCA Inc's loans gained between 12.5bp and 25bp this morning on quarterly earnings before coming back to unchanged with the softening in equities. The TLB-1 is currently quoted at 96.75-97, while the TLB-2 is quoted at 97.5-97.75. The hospital operator today said 2Q10 net income rose 3.4% to $293 million from $282 million. Quarterly revenue rose nearly 4% to $7.76 billion and adjusted EBITDA increased 6.5% to $1.49 billion, compared to $1.399 billion in 2Q09.
    On the Break
    • Universal Health Services' new TLB broke for trading late yesterday, currently quoted 99.75-100.125, up a half of a point from yesterday. The loan is priced at LIB+400 with a 98.5 OID and a 1.5% Libor floor. The TLB offers a 200bp ticking fee until the time of close in October. the issuer upsized the size of both its term loan A and term loan B by $50 million apiece. The size of the TLA and TLB now stand at $1.05 billion and $1.6 billion, respectively.
    • inVentiv Health's new $525 million, six-year term loan is currently quoted 99.75-100.25 after breaking late yesterday in the 99.25-100.25 range. The issuer previously cut pricing on the loan to LIB+475 from LIB+500, while the OID was tightened to 98.5 from 98 after netting an oversubscription. The loan benefits from a 1.75% Libor floor. Citi leads the loan, which backs the company's $1.1 billion LBO by THL Partners. The financing also includes a $75 million, five-year revolving credit. The corporate family rating is B2, while the credit facility rating is Ba3.
    • Cedar Fair's new $1.275 billion term loan B has run up to 100.25-100.625 since breaking earlier in the day closer to par. The loan was previously upsized by $25 million and the concurrent revolver was downsized by the same amount to $275 million. In addition, pricing on the TLB was flexed down to LIB+400 from LIB+425. A 1.5% Libor floor and a 99 OID remained unchanged. JP Morgan leads the deal. With the company's issuance of bonds, senior secured leverage will drop to 3.6 times from 4.7 times. The corporate family rating is Ba3/B+, while the facility rating is Ba2/BB-.
    New Issue
    • A total of 29 banks piled onto Universal Health Services' $800 million, five-year revolving credit facility and slightly-increased $1.05 billion, five-year term loan A. The 29 include lead arrangers JP Morgan, which holds $165 million, and Deutsche Bank Alex Brown and Bank of America Merrill Lynch, which hold $140 million each. Bank of Tokyo-Mitsubishi UFJ, Credit Agricole, RBS and SunTrust joined at the top tier level with $125 million each.
    • AMN Healthcare Services announced it expects to refinance its existing bank debt in connection with its acquisition of Medfinders. AMN expects to amend and extend its outstanding $107 million term loan B and increase the facility by an estimated $68 million to $175 million and issue a $50 million second-lien term loan. In addition, AMN expects to amend and extend its existing revolving credit facility, which is expected to be undrawn at closing. The company also expects to pay off Medfinders' existing debt facilities totaling approximately $132 million. The enterprise value of the transaction, including the $132 million of Medfinder debt, is $220 million. The transaction, which is expected to be accretive to full year earnings in 2011, is expected to close in the third quarter of 2010. It is subject to customary closing conditions, regulatory approvals and receipt of debt financing.
    • Price talk on Airvana's $330 million term loan is LIB+700 with a 2% Libor floor and a 97-98 OID. Jefferies, Macquarie and SG launched the deal this morning. Proceeds are to pay a dividend to the company's sponsors. SAC Capital and GSO Capital Partners and ZelnickMedia are the sponsors. The company was bought out in December 2009 for about $530 million. Airvana is a provider of mobile-broadband-network infrastructure products.
    • Credit Suisse is launching Monday a $205 million bank loan backing Strategic Partners' LBO by Bank of America Merrill Lynch Partners. The deal includes a $30 million revolving credit facility and a $175 million term loan. Strategic Partners provides consulting, coaching, and training services to federal agencies and Corporates.
    • Price talk on Global Brass and Copper's $330 million term loan is LIB+750 with a 2% Libor floor and a 97 OID. The term loan also has 105, 103 and 101 call protection. Proceeds are to pay a dividend and to refinance existing debt. Commitments are due August 10. Goldman Sachs launched the deal today. The company is also raising a $150 million asset-based revolving credit facility. The company was created by KPS Capital Partners in 2007 to acquire the world-wide metal business of Olin Corp. Global Brass and Copper is a manufacturer and distributor of specialized copper and brass products.   
    • Blount International will bump up pricing by 50bp to LIB+400 to extend $275 million of its term loan B to August 2016. In addition, the facility will now have 101 soft call protection for the first year and will amortize at 1% per year. A 1.5% Libor floor and 99 OID on the TLB remain unchanged. the issuer will replace its $75 million delayed-draw term loan with a $75 million, five-year term loan A. The TLA will be priced at LIB+350 and will amortize at 10% per year, with the balance due at maturity. GE Capital leads the amend/extend. Blount is a manufacturer of saw chain and related accessories.
    • Price talk is LIB+475-500 on CIT Group's $3 billion, five-year term loan. The deal features a 1.75% Libor floor and a 98 OID. There is also 102, 101 soft call protection. Commitments will be due August 3 by 5:00 p.m. Bank of America Merrill Lynch launched the deal this afternoon. Proceeds are to refinance remaining first-lien debt. Existing lenders have the option to roll into the new term loan with the same economics, including the 98 OID. In addition, extending tranche 1 term loan lenders will also receive a 225bp extension fee, a 25bp premium to the existing exit fee. Extending tranche 2 term loan lenders will receive a 200bp extension fee. Corporate family ratings of B3/B+ and facility ratings of B1/BB are expected.
    • Price talk on MultiPlan's $1.3 billion, seven-year term loan B is LIB+450-475 with a 1.75% Libor floor and a 98-98.5 OID. Senior secured and total leverage are 3.9 times and 5.9 times, respectively. Barclays, Credit Suisse and Bank of America Merrill Lynch launched the deal this afternoon. It includes a $75 million, five-year revolving credit facility. Proceeds are to back the $3.1 billion LBO of the company by BC Partners and Silver Lake from Carlyle Group and Welsh, Carson, Anderson & Stowe.
    High Yield
    • Price talk of 7.75%-7.875% is out on Tenneco Inc (NYSE:TEN) USD225m 144A sr notes due 2018 (8y). NC4. Ratings TBD (B2/B existing). Via DB/Citi/MS/RBS/WFS joint books, + co-managers. With reg rights. Books close at 1:30pm today. Pricing this afternoon.
    • Price talk of 6.75%-7% is out on Range Resources Corp (NYSE:RRC) USD350m SEC rergistered sr sub notes due 2020 (10y). NC5 (MWC T+50bp). Equity claw: 3y 35%. Ba3/BB (stable/stable). Via JPM/BAML/WFS joint books, Barc, CS, DB, RBC, BMO, Citi, CA, BNPP, STI, BBVA, Key, Comerica, MUS, CapOne, Scotia, SocGen, Natixis, USB as co-managers. Off the shelf. Books close at 2pm today. Pricing this afternoon.
    Jul 30 5:15 PM | Link | Comment!
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