Leveraged Finance >>>

    Beazer Rides Housing to New $150 Million Loan

    Beazer Homes is benefiting from a resumption of lending to the U.S. housing industry as banks open the taps for a builder that hasn’t generated enough cash to cover interest expenses for five years. Beazer, which reported net losses in eight of the last nine quarters, replaced a $22 million credit line due to expire Oct. 1 with a $150 [...]

    LSTA Special Issue – Leveraged Finance

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    Stillwater Declines After Announcing Bond Sale

    Stock in Stillwater Mining, a producer of platinum-group metals in Montana, fell the most in 11 months after the company said it would sell $300 million of convertible bonds to repay existing debt. Stillwater dropped 9.1 percent to $11:02 at the close, the most since Nov. 1, 2011. Stillwater will also give its underwriters an over-allotment option to buy [...]

    Vanguard to JPMorgan Dodge Neediest Borrowers

    Investors from Vanguard to JPMorgan are shunning bonds from the neediest borrowers as a slowing economy sends the default rate for companies that ratings firms deem to be in “poor standing” to the highest level since 2009. Vanguard’s $18.4 billion fund that buys junk bonds is “incrementally taking down risk on a credit-by-credit basis,” said Dan Newhall, principal at the firm. [...]

    Tenet’s Industry-Leading Debt Load Inflates

    Tenet Healthcare, already carrying the highest debt-to-equity load among U.S. health-facilities companies, is planning to increase shareholder returns with a strategy that’s leading to more borrowing. Tenet announced a four-point program on Oct. 1 that included $800 million of debt in a two-part bond sale that day. It’s also aiming to make $400 million of acquisitions, purchase $500 million of its stock [...]

    Groupama Bonds Plunge After Missed Payment

    Groupama’s undated hybrid bonds plunged after the French insurer, hurt by Greek sovereign-debt losses, said it would skip the next interest payment on one of the bonds. Groupama’s 1 billion euros of junior subordinated bonds, which have no stated maturity date, fell to 41.13 cents on the euro at 12:10 p.m. Paris time from 51.02 cents, according to Bloomberg generic prices. “If you stop [...]

    Dividend Recap Spree Will Continue, Says Thoma

    Private equity firms will take more dividends via the leveraged loan market in October than September, said Carl Thoma, managing partner and cofounder of Thoma Bravo. In the first week of October $2.3 billion of new deals were announced, according to Bloomberg data. This follows $7.9 billion in dividend recapitalizations in September, the highest volume in almost two years, according to [...]

    CIT Says to Issue Less Debt on Path to High Grade

    CIT Group, the biggest speculative-grade bond issuer this year, plans to limit bond sales and focus on increasing deposits as it tries to gain investment-grade status, Glenn Votek, the company’s treasurer, said in a telephone interview. “You’re not going to see us doing $10 billion a year,” Votek said. “We’ll be a smaller unsecured issuer. It’ll be more [...]

    Mezzanine Debt Offers Unprecedented Value Versus First Lien, Says Tannenbaum

    The spread between second-lien mezzanine loans and first-lien senior debt is the widest since Len Tannenbaum founded Fifth Street Finance in 1998. Tannenbaum, CEO of the firm which has $1.3 billion in assets, is seizing what he views as an opportunity in mezzanine. Tannenbaum spoke to Bloomberg Brief’sDavid Holley. Q: How has the hunt for yield tickled down to the middle [...]

    Hongqiao Delays Bond on Market Conditions

    China Hongqiao Group, which makes aluminum products, temporarily delayed its planned sale of U.S. dollar-denominated bonds. The issue was postponed due to “market conditions,” according to Christine Wong, a Hong Kong-based investor relations manager at Imagination Asia, which manages the company’s public relations. China Hongqiao was talking to investors about a benchmarksized, five-year bond with a yield of around 11 percent, a person familiar [...]

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