http://www.creditflux.com/ en-gb Mon, 15 Mar 2010 13:23:00 UTC 60 Electronic sensor maker Sensata has extended its early bird tender by a week to Thursday 18 March following a disappointing response to its offer on the 2014-dated 8% senior notes, 11.25% subordinated notes and 2016-dated 9% subordinated notes. The company has only received about $99 million of its targeted $350… http://www.creditflux.com//2010-03-15/Sensor-maker-extends-early-bird-tender/ 2010-03-15 13:23:00 Danish firm Vestas Wind Systems has sold €600 million of bonds at 225bp above five-year swaps on its debut in the credit market, according to various reports. The deal was said to be two times oversubscribed. Vestas, the world’s largest maker of wind turbines, said earlier today that the proceeds… http://www.creditflux.com//2010-03-15/Wind-turbine-maker-sells-600-million-in-debut-bond-offering/ 2010-03-15 13:16:00 LyondellBasell has announced it plans to issue $3.25 billion of new first-priority secured bonds and bank loans to refinance existing debt (including its DIP loan and European securitisation facility), as well as complete a $2.8 billion equity rights offering. Evolution Securities notes investor interest around the name following the news.… http://www.creditflux.com//2010-03-12/LyondellBasell-plans-325-billion-new-issuance/ 2010-03-12 13:23:00 US waste management company EnviroSolutions Holdings filed for bankruptcy on Wednesday, according to various media reports. The privately owned company, which has total liabilities of $289 million, has secured $30 million of debtor-in-possession financing. The company’s term loans and revolver are not widely held but are present in a number… http://www.creditflux.com//2010-03-12/Waste-manager-secures-30-million-DIP/ 2010-03-12 11:43:00 In credit research today, Royal Bank of Canada maintains an outperform recommendation on Glencore International’s cash bonds. Strategists also highlight an attractive basis to credit default swaps (153/161bp, and spread pick-ups from switching from Xstrata in cash or CDS (122/128bp). RBC notes there is an issuer-redemption-at-par option from February 2011… http://www.creditflux.com//2010-03-11/RBC-highlights-Glencore-basis-playsspread-pickups/ 2010-03-11 13:00:00 A number of new bond issues have priced or have talk emerging, including Abbey, Pernod Ricard, Ceva Logistics, Stena. Other firms also look set to bring bonds to market shortly, including Bank of America, Barclays, Renault and Huntsman. Santander-owned Abbey is reportedly set to issue a 2013-dated €1 billion covered… http://www.creditflux.com//2010-03-11/Several-firms-bring-new-bonds-to-market-with-more-planned/ 2010-03-11 12:48:00 A number of large European companies from the eurozone periphery are looking to issue corporate bonds http://www.creditflux.com//2010-03-09/Tightening-spreads-tempt-eurozone-borrowers-to-the-primary-market/ 2010-03-09 10:50:00 Indiana-based gaming company Centaur filed for bankruptcy on Sunday, according to a company announcement. The chapter 11 filing in Delaware, where the privately owned company lists its debts as being more than $500 million, follows an October restructuring which resulted in two of its operating companies filing for bankruptcy. Centaur’s… http://www.creditflux.com//2010-03-09/Race-track-owner-files-for-bankruptcy/ 2010-03-09 09:21:00 Dubai credit default swaps have rallied to new recent tights today, after Dubai World called a meeting of creditors in London this week to discuss its debt plans. The group is looking to restructure around $22 billion. Dubai CDS is around 20bp tighter to 488bp on the news. The Financial… http://www.creditflux.com//2010-03-08/Dubai-Worlds-debt-plan-call-prompts-emirate-CDS-rally-/ 2010-03-08 13:52:00 Scandinavian Airlines (SAS) is quoted half a point tighter in credit defaults swaps today, with a mid of 11.25 points upfront – although the bid/offer differential has widened. The company will use its 7 April annual general meeting to seek shareholder consent to issue convertible bonds that will refinance SEK2… http://www.creditflux.com//2010-03-08/SAS-seeking-consent-to-refinance-through-convertibles/ 2010-03-08 11:38:00 Traders say that the new bond issue from hospital operator HCA, the largest high yield bond issue of the year at $1.4 billion, will be closely watched in the secondary market http://www.creditflux.com//2010-03-04/Traders-watch-secondary-performance-of-jumbo-junk-issue/ 2010-03-04 11:15:00 Wind Hellas bonds have fallen today following yesterday’s fourth quarter results http://www.creditflux.com//2010-03-03/Wind-Hellas-bonds-take-hit-after-market-digests-numbers-/ 2010-03-03 12:29:00 High yield companies are hoarding increasing amounts of cash, notes Morgan Stanley analyst Jocelyn Chu, in the bank’s latest Leveraged Finance Insights report. She calculates that US high yield companies have increased their cash balances by almost 30% in the past year to $141 billion, as they strive to rebuild… http://www.creditflux.com//2010-03-03/Watch-out-for-issuers-with-cash-says-Morgan-Stanley/ 2010-03-03 10:05:00 In its latest Credit Line research report, Goldman Sachs adds BT Group’s 8.625% 2030 bonds to its list of “picks”. The firm favours these bonds in place of the 5.95% 2018 notes that were previously on its pick list. It says 25 basis point coupon step-up in the longer dated… http://www.creditflux.com//2010-03-03/Goldman-favours-BT-stepup-bond/ 2010-03-03 10:00:00 Goldman Sachs yesterday sold $2 billion of dollar denominated 2020-dated senior notes. The 5.375% notes yield 190bp over treasuries. 10-year credit default swaps referencing the bank trade at 132bp currently. US banks are said to be looking to secure longer-term funding to replace 2012-dated debt guaranteed by the government. US… http://www.creditflux.com//2010-03-02/Goldman-issues-2-billion-of-10year-notes/ 2010-03-02 12:12:00 Electronic sensor maker Sensata on Friday announced a modified Dutch auction for senior and subordinated notes. The company is seeking to purchase $350 million in aggregate and is offering holders of the €177 million of its 9% sub notes, due 2016, total consideration in the range 87.5-97.5 cents, including a… http://www.creditflux.com//2010-03-01/Investors-weigh-prospective-tendersbuyout-issuance/ 2010-03-01 13:19:00 Subordinated bonds issued by US video rental chain Blockbuster staged a modest rally this week after a recent dramatic collapse http://www.creditflux.com//2010-02-26/Bond-holders-wake-up-to-Blockbusters-troubles/ 2010-02-26 10:18:00 Ceva Logistics has announced the commencement of a cash tender offer for its second priority notes, following the firm’s release of its preliminary full year results. Ceva is offering a cash tender and consent solicitation of its outstanding €120 million and $127 million 12% second-priority senior secured notes due 2014… http://www.creditflux.com//2010-02-25/Logistics-firm-makes-cash-tender-offer/ 2010-02-25 11:33:00 Newsprint producer White Birch Paper Company filed for chapter 11 bankruptcy in the US and under Canada’s CCAA procedure yesterday, along with various subsidiaries. Term loans issued by the holding company, and by White Birch Paper Limited, are held by around 16% of US CLOs, according to Creditflux’s CLO Master.… http://www.creditflux.com//2010-02-25/News-print-loan-issuer-files-for-bankruptcy/ 2010-02-25 10:31:00 Ladbrokes, Bombardier and Continental are today in focus for investors around potential bond issues, notes Evolution Securities. Price talk has emerged on Ladbrokes’ proposed £200 million seven-year bond offering at 7.625%-7.875%, in line with previous whispers. Bombardier has announced the early bird results for its bond tender for up to… http://www.creditflux.com//2010-02-24/Bond-price-talktender-offers-come-into-focus/ 2010-02-24 13:44:00 Volatility in credit default swaps referencing Kabel Deutschland and Continental has not been helped today by the game of cat-and-mouse between Germany and Greece over the latter’s debt http://www.creditflux.com//2010-02-23/German-credits-remain-volatile-despite-positive-news/ 2010-02-23 13:58:00 Houghton Mifflin Harcourt Publishing said yesterday that it has raised $650 million in new equity to support a debt restructuring outside bankruptcy. Senior lenders will convert 60% of their loans, amounting to $2 billion, into equity, and all of the issuer’s mezzanine debt – a total of $2.1 billion –… http://www.creditflux.com//2010-02-23/School-book-publisher-restructures-its-debt/ 2010-02-23 12:23:00 Isda’s credit derivatives determinations committee looks set to declare the latest credit event by a Japanese company. Wireless telecoms company Willcom filed for bankruptcy last Thursday (18 February) with a reported $2.3 billion in debt. The company was bought out by private equity firm Carlyle in 2004, when it bought… http://www.creditflux.com//2010-02-23/Isda-committee-set-to-rule-on-latest-Japanese-bankruptcy/ 2010-02-23 11:38:00 Kabel Deutschland credit default swaps are trading some 60bp tighter today than they did on Friday http://www.creditflux.com//2010-02-22/Media-firm-rallies-sharply-on-IPO-news/ 2010-02-22 11:53:00 Talk circulated Friday that hedge funds holding Seat Pagine subordinated bonds are moving to ditch them and buy secured bonds that are much tighter, in spread terms http://www.creditflux.com//2010-02-22/Hedge-funds-dump-directory-companys-sub-bonds-for-secured/ 2010-02-22 10:13:00 German auto equipment/systems companies Duerr and Hella are reportedly making moves to address their debt. Duerr has indicated it may look to redeem its remaining bonds before the end of the year, while Hella is said to be targeting a €400 million loan to help refinance its existing $550 million… http://www.creditflux.com//2010-02-19/German-autopart-companies-move-to-address-debt-/ 2010-02-19 14:19:00 A dealer auction today returned a high recovery of 97 on credit derivative trades referencing Mexican cement maker Cemex http://www.creditflux.com//2010-02-18/Dealers-settle-cement-maker-CDS-at-high-final-price/ 2010-02-18 20:24:00 Credit default swaps referencing Ladbrokes have widened some 16bp to 254bp today, despite the UK betting firm’s results looking slightly better than analyst expectations http://www.creditflux.com//2010-02-18/Ladbrokes-CDS-widens-following-resultstender-offer-/ 2010-02-18 13:47:00 Credit default swaps referencing the United Kingdom are pushing wider following the country posting its first January budget deficit since records began in 1993. Today’s numbers, described by commentators as ‘dire’ and ‘horrendous’, show a deficit of £4.3 billion against an anticipated £2.7 billion surplus. There was a £5.3 billion… http://www.creditflux.com//2010-02-18/UK-concerns-grow-after-first-January-budget-deficit-since-1993/ 2010-02-18 12:39:00 Dubai World is expected to present a proposal to creditors in March to restructure some $22 billion of debt, it has been variously reported. An unnamed source is cited by Bloomberg as saying the restructuring will happen in consultation with the Abu Dhabi government and UAE central bank and after… http://www.creditflux.com//2010-02-18/Dubai-World-to-present-restructuring-proposal-in-March/ 2010-02-18 09:10:00 Banco Santander yesterday announced another tender offer, which would involve buying back its 6.671% upper tier-two dollar issue – a perpetual note with a call in 2017 – at a price of 100.5. The bank says the purpose of the tender is to acquire outstanding notes to improve capital structure… http://www.creditflux.com//2010-02-18/Santander-announces-new-tender-offer/ 2010-02-18 08:30:00 LyondellBasell has announced it has reached a new agreement with unsecured creditors as it strives to emerge from chapter 11. The deal pertains to a lawsuit arising from Basell’s leveraged buyout of Lyondell in 2007. Under the revised terms unsecured creditors of ‘Millennium Bonds’, 2015-dated notes and general claims will… http://www.creditflux.com//2010-02-17/LyondellBasell-reaches-agreement-with-creditors/ 2010-02-17 11:24:00 The supply of new high yield debt could overwhelm demand this year, warns Goldman Sachs in the latest issue of its US credit strategy report, the Credit Line. It says that although the market has been driven by a strong demand-dominated technical this year, the need of companies to refinance… http://www.creditflux.com//2010-02-16/LBO-refi-needs-could-overwhelm-demand-warns-Goldman-Sachs/ 2010-02-16 12:16:00 A recent Citi high yield research report highlights a relative value trading opportunity in the new issue market. It suggests switching out of double B rated natural gas prospector Chesapeake Energy’s 2016 6.875% notes, which at a price of 96 cents in the dollar are equivalent to a 494 basis… http://www.creditflux.com//2010-02-16/Dump-gas-prospector-bonds-for-pipe-makers-suggests-Citi/ 2010-02-16 12:00:00 Volatile markets are causing more problems for high yield new issuance, with airplane manufacturer Bombardier and Romanian cable company RCS/RDS the latest to pull note offerings http://www.creditflux.com//2010-02-15/Volatility-scuppers-more-high-yield-note-offerings/ 2010-02-15 12:02:00 Rig operator Songa Offshore has become the latest European company to postpone its debt offering due to market volatility. The Norwegian firm said it has pulled its $200 million offering of senior notes because of a deadline it faces today, after which its Q3 2009 results will no longer be… http://www.creditflux.com//2010-02-12/Rig-operator-pulls-200-million-note-offering/ 2010-02-12 13:56:00 Bloomberg reports that Lyondell Chemical’s settlement with creditor Bank of New York Mellon has won approval after the deal was amended so it won’t block any rival offers to finance the bankrupt company’s reorganisation. US bankruptcy Judge Robert Gerber in Manhattan yesterday approved the agreement, subject to changes that allow… http://www.creditflux.com//2010-02-12/Lyondell-settlement-with-BoNY-Mellon-approved-reports-Bloomberg/ 2010-02-12 12:45:00 Markit has announced the launch of the iBoxx USD Leveraged Loan Index (LLI). The index is designed to serve as a benchmark for investors’ cash loan portfolios and to enable performance attribution analysis. Markit says the LLI is the first leveraged loan index to use up-to-date reference and transaction data… http://www.creditflux.com//2010-02-12/Markit-launches-benchmark-US-leveraged-loan-index/ 2010-02-12 11:39:00 Bank of America has promoted Alastair Borthwick to co-head global capital markets alongside Merrill Lynch executive Lisa Carnoy. According to a press release, the decision follows the appointment of former post holder Bruce Thompson to the role of chief risk officer. Rupert Hume-Kendall has also been appointed as chairman of… http://www.creditflux.com//2010-02-11/BoA-Merrill-appoints-capital-markets-coheads/ 2010-02-11 12:01:00 Central European coal maker New World Resources has pulled its €700 million senior secured notes offering, citing credit market volatility. The company claims to have had strong investor interest but said that concern over sovereign debt meant ‘this was not the time for efficient pricing’. New World says it will… http://www.creditflux.com//2010-02-10/Coal-maker-withdraws-note-offering-/ 2010-02-10 11:56:00 New York-based trade publisher Penton Media, whose loans are owned by a sizeable number of CLOs, announced today that it plans to file for chapter 11 bankruptcy as part of a debt restructuring agreement. The company’s debt, which was already rated triple C, is owned by 21% of US CLOs,… http://www.creditflux.com//2010-02-10/Trade-publisher-bankruptcy-plan-hits-CLOs/ 2010-02-10 01:51:00 Credit default swaps referencing transport manufacturer Bombardier have tightened following its tender offer http://www.creditflux.com//2010-02-09/Airplane-maker-aims-at-quick-tender-to-extend-maturities/ 2010-02-09 14:02:00 UBS has reported better-than-expected fourth quarter figures showing a pre-tax profit of CHF912 million (€625.75 million) and net income of CHF1.2 billion. The results were driven by lower credit costs, lower own credit charges and reduced personnel expenses, while a positive tax credit impacted net income. Underlying pre-tax profit for… http://www.creditflux.com//2010-02-09/UBS-returns-to-profit-as-owncredit-charges-slow/ 2010-02-09 12:57:00 Fitch Ratings has calculated that the recovery rate on defaulted US high yield bonds nearly tripled in the second half of 2009 compared to the first half of the year. In a recent report entitled US High Yield Default and Recovery Rates 2009 Review and Outlook, the rating agency says… http://www.creditflux.com//2010-02-08/High-yield-recoveries-soared-in-H2-2009-finds-Fitch/ 2010-02-08 23:17:00 Kabel Deutschland has announced it has secured 97% lender support for an amend-and-extend on €1.45 billion of bank debt. The company is now able to roll €949 million term A – due 2012 – and €497 million term C – due 2013 – paper to March 2014. Evolution Securities notes… http://www.creditflux.com//2010-02-08/High-yield-firms-secure-debt-agreements/ 2010-02-08 14:17:00 S&P has lowered its long-term corporate credit rating on SNAI to B from B+ after the Italian gaming and betting company cancelled its planned €350 million offering of notes. The outlook is negative due to liquidity concerns over SNAI’s ability to refinance 2011 facilities. Last week SNAI pulled its notes… http://www.creditflux.com//2010-02-08/SP-cuts-gaming-cos-rating-after-notesoffer-cancellation/ 2010-02-08 14:04:00 On Friday, Romanian cable company RCS/RDS announced an offering of $200 million unsecured notes due 2017. Proceeds of the sale, aimed at boosting the firm’s liquidity, will be used to refinance existing bank debt, acquisitions and capital expenditure. It is thought interest could exceed 8%. S&P has assigned the notes… http://www.creditflux.com//2010-02-08/Romanian-cable-company-offers-200-million-of-notes/ 2010-02-08 12:33:00 Freescale Semiconductor has announced it is looking to issue $750 million in senior secured notes http://www.creditflux.com//2010-02-05/Electronics-manufacturer-seeks-debt-restructuring/ 2010-02-05 13:25:00 Isda has confirmed that an auction will take place for European loan-only CDS transactions referencing Lafarge Roofing. Today’s announcement also provides a bit more information on the trigger for the credit event (see Dealers vote for auction on roofing company loan CDS ). Dealers have determined that a restructuring credit… http://www.creditflux.com//2010-02-05/Isda-provides-further-detail-on-roofmaker-auction/ 2010-02-05 13:09:00 Dealers have finally voted to hold an auction on Lafarge Roofing / Monier European loan credit default swaps, following the debt restructuring in October last year that saw a group of investors take control of the company. It is not yet clear why this trigger has taken so long to… http://www.creditflux.com//2010-02-04/Dealers-vote-for-auction-on-roofing-company-loan-CDS/ 2010-02-04 14:17:00