Leveraged Finance >>>

    RadioShack Shakeup Spotlights Debt Refinancing

    The departure of RadioShack’s CEO this week sets up the electronics chain for a debt refinancing that may reduce the amount of money bondholders would recover in a bankruptcy. The retailer may use second-lien debt to refinance $375 million of convertible notes due next year, according to a report from JPMorgan, which cited a meeting it had with [...]


    High-Yield CDX Spread Narrows


    Junk Utility Spreads Tighten in Line With Market


    National Enquirer Owner Invites Default Talk

    Just two years after emerging from bankruptcy, the publisher of the National Enquirer is being abandoned in the bond market on concern that competition will push it back into default. American Media’s $470 million face value of bonds have lost 3 percent of their value this month, the worst performance among distressed issuers, according to BAML index data. S&P downgraded the company owned by [...]


    Algoma Pays Up to Refinance, May Flex Higher

    Essar Steel Algoma, the Canadian steelmaker that had been downgraded by S&P twice since April, said it is refinancing a maturing revolver with a term loan that pays at least 575 basis points more margin over Libor. Deutsche Bank has been marketing a $350 million term loan at 750 basis points over Libor, compared with the 175 basis point margin [...]


    Fortescue Talks to Lenders About Potential Debt Relief

    Fortescue Metals Group, Australia’s third-biggest producer of iron ore, said today it is in talks with lenders about potential debt relief, even as it remains fully compliant with its loan covenants. Discussions are on “about potential waivers in the event that covenants are put under pressure by extended volatility in the iron ore market,” the [...]


    Pension Funds Target Private Debt in Yield Hunt

    U.S. state and county pension funds are expanding their search for yield beyond junk bonds into less liquid middle-market loans, analysts and investors said. “In a very low interest environment, 2 to 3 percent returns don’t work. It increases the hole for pension funds,” said Theodore Koenig, president and CEO at Monroe Capital, a middle-market loan investor [...]


    Moody’s Liquidity Stress Index


    Bloomberg Barometer

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    Homebuilder Bond Rally Unsustainable, Baha Says

    Investor interest in homebuilder high-yield bonds, which have tightened twice as much as the overall high-yield market since the beginning of the year, is a temporary shift largely driven by a technical demand for yield, according to Bonnie Baha, the head of global developed credit at DoubleLine Capital, which oversees $40 billion. “It’s hard for me to see a sustained improvement [...]


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