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Qualified private activity bonds (PABs) represent an opportunity to spur private sector investment into state and local government projects. To help galvanize these efforts, parts of the USD 1trn Infrastructure Investment and Jobs Act (IIJA) provide authorization of additional activities that qualify for…
The Department of Energy believes a modernized electricity grid is a critical component to increasing resiliency of essential services and infrastructure. To help with modernization efforts, including clean energy technologies, parts of the USD 1trn Infrastructure Investment and Jobs Act (IIJA) provide approximately USD…
US intercity passenger rail investment has lagged other industrialized countries for decades. To improve the situation, parts of the USD 1trn Infrastructure Investment and Jobs Act (IIJA) provide approximately USD 66bn in new spending for passenger and freight rail programs over the next five…
The Federal Communications Commission (FCC) estimates that more than 14 million Americans are without reliable broadband service. To improve the situation, parts of the USD 1trn Infrastructure Investment and Jobs Act (IIJA) provide approximately USD 65bn to increase connectivity nationally, narrow the digital divide…
The American Society for Civil Engineers estimates there is a USD 176bn transit investment backlog, a deficit that is expected to grow to more than USD 270bn through 2029 and to USD 500bn by 2039. To improve the situation, parts of the USD 1trn …
The American Society for Civil Engineers estimates that 43% of our public roadways are in poor or mediocre condition. To improve the situation, parts of the USD 1trn Infrastructure Investment and Jobs Act (IIJA) aim to increase core highway formula programs to fund upgrades and repairs the nation’s…
The Environmental Protection Agency (EPA) estimates there are 6 to 10 million lead service lines in the country. Parts of the USD 1trn Infrastructure Investment and Jobs Act (IIJA) take aim at bolstering state and local utility efforts to address drinking water infrastructure over the next…
The ransomware threat to state and local governments is growing. Parts of the USD 1trn Infrastructure Investment and Jobs Act (IIJA) take aim at protecting state and local governments from cyberattacks. If authorized, approximately USD 1.9bn is being allocated to secure critical infrastructure sectors against…
The increasing frequency of billion-dollar climate disasters has state and local governments under pressure to prepare for the next wave of weather destruction. Parts of the USD 1trn Infrastructure Investment and Jobs Act (IIJA) take aim at anticipating the climate-related capital needs of municipalities. For example, one feature…
Purdue Pharma filed amended versions of its plan and disclosure statement today, adding for the first time a detailed evaluation of its USD 4.275bn settlement with the Sackler family that owns the company. Purdue is scheduled to seek approval of its disclosure statement on Wednesday, after several short delays in…
Highland Capital Management LP is once again embroiled in a fight with entities affiliated with co-founder James Dondero, The Charitable DAF Fund LP and CLO Holdco Ltd continue to argue that they aren’t in contempt of court for pursuing a District Court lawsuit related to James Seery, the debtor’s independent director and chief restructuring officer…
Kirana family-controlled Lion Mentari Airlines (aka Lion Air) appears to have transferred a total of IDR 968bn (USD 67.8m) to Super Air Jet, a new budget airline, and Flyindo Aviasi Nusantara (FAN), a new charter-flight service, both controlled by the same family, said two sources familiar with the situation.
[Editor’s note: This article updates a breaking news …
The Boy Scouts of America (BSA), scheduled to seek approval of its disclosure statement next week, faces objections from religious organizations, the Girl Scouts, and the office of the US Trustee, in addition to the large numbers of objections filed by insurers.
Stream TV Networks Inc and SeeCubic—a vehicle of StreamTV’s secured convertible noteholder—today traded arguments as to whether StreamTV filed for Chapter 11 protection in good faith, or if it launched the bankruptcy to evade the consequences of a Delaware Chancery Court litigation. Judge Karen Owens of the US Bankruptcy Court for…
The National Rifle Association of America (NRA) on Monday afternoon (3 May) gave its closing arguments in the lengthy trial on dismissal of its Chapter 11 case, sought by New York Attorney General Letitia James and Ackerman McQueen, an advertising agency that is the debtors’ largest creditor. Debtor counsel asserted that the…
The National Rifle Association (NRA) filed an objection today to former CFO Woody Phillips’ stay relief motion, which seeks coverage for his defense costs in the New York Attorney General’s dissolution lawsuit under the company’s directors and officers (D&O) policy. In Phillips’ motion, filed 12 April, the former officer argues that…
Purdue Pharma, which filed a …
The Boy Scouts of America filed an amended Chapter 11 plan and disclosure statement today, increasing the proposed contribution from local councils to USD 425m for sexual-abuse settlements. The previous version of the plan had set that contribution at USD 300m. The Boy Scouts of America’s amended disclosure statement also…
A National Rifle Association board member said today that he became increasingly concerned about the organization’s governance practices after reviewing an August lawsuit in which New York Attorney General Letitia James sought to dissolve the organization over allegations of financial mismanagement. Phillip Journey, a Kansas state court judge who joined the…
Moelis has filed a lawsuit against Ferrellgas LP after the company refused to pay its USD 20.73m transaction fee for work the firm performed during parent Ferrellgas Partners’ bankruptcy case. The plaintiff, which served as Ferrellgas’ financial advisor in its Chapter 11 case, alleges that it is owed USD 19.25m under a transaction…
The National Rifle Association of America (NRA) this morning embarked on its much-anticipated hearing on …
Entrust Energy Inc has filed for Chapter 11 to prevent the Electric Reliability Council of Texas (ERCOT) from forcing a mass transition of its customers to a provider of last resort (POLR). The termination of the retail energy provider’s hedges allowed the company to satisfy the USD 52m outstanding credit…
Purdue Pharma’s bankruptcy judge extended an injunction on litigation against the Sackler families and other parties associated with the bankrupt opioid manufacturer for another month, giving Purdue more time to attempt to finalize a Chapter 11 plan that depends on a multibillion-dollar contribution from the Sacklers. Judge Robert…
Highland Capital Management co-founder James Dondero has filed a motion to recuse the judge overseeing the company’s bankruptcy case, alleging that she has showed “undeniable animus” toward him. Dondero claims that Judge Stacey Jernigan of the US Bankruptcy Court for the Northern District of Texas has concluded that any entity…
Purdue Pharma has filed a disclosure statement and reorganization plan centered on the contribution of USD 4.5bn from the Sackler family and the dissolution of the company, with future non-opioid businesses owned by two opioid abatement trusts. When Purdue …
Mallinckrodt plc has filed an adversary complaint against a group of shareholders that oppose its current Restructuring Support Agreement, accusing the shareholder group of making misleading statements in a proxy campaign designed to disrupt ongoing RSA negotiations. Mallinckrodt alleged that Buxton Helmsley Group Inc is attempting “to frustrate and disrupt this bankruptcy…
The potential for rising rates – and the chilling effect that would have on fixed income returns – is top of mind for high yield investors. One of the latest signals comes from the general collateral repo market, where rates have hovered negative – a trend that could add…
Remington Outdoor Company’s bankruptcy judge confirmed its bankruptcy plan today, after final revisions intended to address the concerns of tort claimants whose recoveries are highly dependent on litigation against Remington’s insurers. Remington’s …
Sundance Energy has filed for Chapter 11 with a prepackaged plan of reorganization setting up a debt-for-equity swap on a 45-day timeline. The company’s prepetition term loan lenders are funding the case with USD 50m in debtor-in-possession (DIP) financing. The DIP lenders would receive 38.04% of reorganized Sundance’s equity, with…
CarbonLite Holdings LLC filed for bankruptcy today to undergo a sale process with debtor-in-possession (DIP) financing milestones requiring a sale to close within 75 days of the petition date. The company is armed with four separate DIPs, with the financing being split up between three different debtor groups. The company,…
Highland Capital Management LP’s …
[This updates …
Belk has secured confirmation of its prepackaged plan of reorganization less than 24 hours after …
Garrett Motion’s bankruptcy judge told the debtor and related parties to shift their evidentiary focus as he weighs motions to approve the company’s entry into a plan support agreement (PSA) or terminate its exclusivity periods. …
Seadrill Ltd moved swiftly through the agenda at its first day hearing today, securing interim access to cash collateral. But the conflicting desires of its two major creditor groups could spell trouble for the future of the case. Judge David Jones of the US Bankruptcy Court for the Southern District…
Garrett Motion’s official committee of equity holders has filed a disclosure statement and plan of reorganization, setting up a battle over how the debtor will be reorganized. The equity committee has long criticized …
The already complicated Chapter 11 case of ONE Aviation continues its twists and turns as parties battle over a motion to convert the case to Chapter 7 and a sale that has already closed. ONE Aviation, an aircraft manufacturer, …
CiCis yesterday filed for Chapter 11 with a prepackaged plan of reorganization that sets up a debt-for-equity swap with its secured lender on a proposed 60-day timeline. The buffet pizza chain generates 86% of its sales from in-store dining and, as a result, has struggled during the coronavirus pandemic, which…
Los Angeles International Airport’s (LAX) USD 758.9m bond deal, expected to price tomorrow (27 January) has sparked interest from investors who see the international gateway’s strong cash position and an anticipated post-COVID-19 travel rebound as reasons for confidence, but some say tightening spreads raise questions about the value equation for…
Hertz, the international vehicle rental group, recently (11 December) secured a convening order in respect of a UK scheme of arrangement forming part of its wider workout. Launched by Hertz UK Receivables Limited, a UK-based subsidiary of the group, the scheme is aimed at injecting EUR 250m of fresh funds…
[This is an update to Debtwire …
Mallinckrodt (MNK) has filed its second motion to reimburse certain creditors’ professional fees and expenses. In its second motion, MNK requests permission to assume reimbursement agreements that it entered into before its bankruptcy filing with certain creditor groups that signed on to the company’s restructuring support agreement (RSA). Under the agreements,…
Some retail holders of China CEFC Energy Group’s defaulted USD 250m, 5.95% unsecured bonds due 2018 have filed a complaint to the Securities and Futures Commission (SFC) of Hong Kong over sole bookrunner CLSA Ltd’s handling of the deal, as per a letter to the regulator seen by Debtwire. The holders,…
Mallinkcrodt’s ad hoc committee of equity holders’ …
Tuesday Morning Corp’s (TMC) bankruptcy judge today confirmed the discount retailer’s Chapter 11 plan, which calls for a backstopped, USD 40m equity rights offering and a new USD 110m asset-based loan (ABL) to fund the company’s post-bankruptcy operations, among other features. Judge Harlin Hale of the US Bankruptcy Court…
Värde Partners has shuttered its Houston office as part of a strategic decision to pull back from investing in the perennially distressed US oil patch, sources familiar with the matter told Debtwire. In an emailed statement to Debtwire today, Värde acknowledged the decision. “Given the deep, long-term structural changes to the shale business…
[Editor’s note: This updates Debtwire’s 16 December report on lender activity in the energy sector to include a statement from ABN AMRO in paragraph 21.] Oil and gas companies have long relied on support from mid-sized domestic banks and major foreign banks to fund their needs. But the inevitability…
In-Shape Holdings LLC will look to sell its assets in Chapter 11, finding itself in a liquidity crunch after nearly a year of the coronavirus pandemic has left it with little ongoing revenue from its health clubs. The company has a stalking horse bid for its assets from In-Shape Acquisition 2021…
Mallinckrodt plc and shareholders who hope to be appointed as an official committee in the drug maker’s Chapter 11 cases presented rival opinions this afternoon (15 December) of Mallinckrodt’s value, and whether there’s enough to provide a recovery to equity. Judge John Dorsey of the US Bankruptcy Court for the…
Chesapeake Energy Corporation today kicked off what is expected to be a lengthy plan confirmation trial with opposition to the proposed plan coming from the unsecured creditors committee (UCC), which argues that the plan is based on an improperly low valuation. During oral arguments today, debtor counsel insisted that the committee’s…
American Purchasing Services LLC (APS), a distributor of medical supplies and equipment, has sought bankruptcy protection to complete an organized winddown and continue ongoing bulk sales of its inventory. The company, which does business as American Medical Depot (AMD), filed a Chapter 11 petition on Friday (11 December) in the US Bankruptcy…
Tuesday Morning Corp’s (TMC) bankruptcy judge today sanctioned a group of investment funds that purchased trade claims in the retailer’s Chapter 11 case, ordering them to correct a website that contained “false and misleading statements” regarding the off-price retailer’s plan of reorganization. Delivering a decision from the bench during…
Specialty retailer Francesca’s Holding Corp will look to sell its assets in Chapter 11 backed by a USD 23.12m stalking horse bid from TerraMar Capital and USD 25m in debtor-in-possession (DIP) financing from term loan lender Tiger Finance. Francesca’s is among dozens of retailers to seek Chapter 11 since the start of the coronavirus…
Superior Energy Services, Inc today entered bankruptcy in order to consummate a prepackaged reorganization plan that would provide an option for either cash or equity to holders of the company’s USD 1.3bn in notes. Along with its prepackaged plan, the company has USD 120m in debtor-in-possession (DIP) financing from prepetition…
White Stallion Energy LLC has filed for Chapter 11 with plans to auction its assets in January backed by debtor-in-possession (DIP) financing and a stalking horse bid from its term loan lenders. The coal miner was hit with a “severe unexpected cash shortage” from a steep decline in the coal…
McKinsey has reached an amended settlement with the US Trustee Program (USTP) over its disclosures while serving as an advisor in bankruptcy. Under the settlement, filed on the docket of the Westmoreland Coal Company Chapter 11 case, McKinsey agrees that its future bankruptcy disclosures “will include, but will not be limited to,…
[Editor’s note: This article updates a …
Societe Generale recently attempted to auction off a portfolio of more than USD 1bn in oil & gas revolving credit exposure, but found muted buyer interest at the mid-90s price point it was seeking. The sizeable book of loans on offer featured more than 30 credits, according to five buysiders familiar…
Garrett Motion Inc (GMI) has set a record for having the highest number of shareholder groups that the Debtwire team can recall having seen in any other case. First off is GMI’s ad hoc group of fund shareholders, which updated its holdings in a Bankruptcy Rule 2019 statement filed late on 10 November, disclosing…
A recent spike in contract rejection efforts in the perennially restructuring E&P space threatens to amplify competitive and balance sheet pressures across the midstream arena. To safeguard their counterparty-reliant business models, gathering and transportation operators may need to explore more resourceful avenues for waging pushback in the coming months, said…
Useful Links: 10-Q for the period ended 30 September 2020 Cleansing Materials…
JCPenney today filed a settlement agreement with a minority group of first lien lenders that aims to resolve disputes that could have held up confirmation of a Chapter 11 plan and an integrated set of transactions that involve selling the retailer’s property assets through a credit bid, while its operating business…
Hertz has filed a motion to enter into a USD 4bn asset-backed securitization (ABS) junior financing facility to purchase vehicles in 2021. Through the financing, with Apollo Capital Management, Hertz would create Hertz Vehicle Interim Financing LLC, a non-debtor remote special purpose entity. The company notes that it is not asking…
California Resources Corp (CRC) used Chapter 11 to shed USD 5bn in debt from its balance sheet. The plan funds the oil and gas company’s assets with USD 200m in second lien exit financing and USD 450m raised through a rights offering. Key to the company’s uncontested confirmation hearing…
Hertz’s bankruptcy judge today approved the company’s motion to use USD 1.65bn in debtor-in-possession (DIP) financing that the company says will allow it to operate through 2021. The rental car giant announced earlier this month that it had secured a USD 1.65m DIP from various lenders with Barclays Bank…
Hertz filed a motion early this morning seeking approval of USD 1.65bn in debtor-in-possession (DIP) financing to support its operations through 2021. The partially redacted DIP motion states that the financing is fully backstopped by Apollo Capital Management and affiliates, Bracebridge Capital, Diameter Capital Partners, First Eagle, King Street Capital…
Great Western Petroleum is attempting to put together a bid for peer Extraction Oil & Gas, which is currently running a dual-track bankruptcy plan process, according to two sources familiar with the matter. The E&P companies have complementary asset bases, given their operational focus in Colorado’s DJ Basin. Great Western has…
Oil & gas companies that overhauled their balance sheets amid the most recent bout of price volatility are facing another thorny problem: how to craft a compelling growth story. Take Whiting Petroleum, whose shares have had a lackluster performance – down 13.6% – since the company’s emergence from bankruptcy…
A wave of financial disclosures from obligors containing specific estimates of the COVID-19 pandemic’s impact on their operations could trigger “extreme” reactions in prices of some municipal bonds, especially high yield names, DPC DATA, Inc.’s Triet Nguyen said. The market has already seen plenty of COVID-19-related disclosures as well…
Big municipal bond deals may get the spotlight, but smaller ones potentially can offer better spreads, according Cumberland Advisors’ Shaun Burgess, who’s finding opportunity these days in new issues in the USD 25m to USD 100m range. Cumberland typically focuses on the higher end of the muni market –…
China ZhengTong Auto Services has requested a late-day deferral of today’s USD 95m amortization payment on a USD 266m outstanding syndicated loan, stating that a planned refinancing facility needed to be suspended because of the re-emergence of COVID-19 in Hong Kong, said two sources familiar with the matter.
An application by the liquidator of four Pacific Andes Group (PAG) entities seeking an order to freeze USD 600m in assets allegedly controlled by the Ng family and related parties was rejected yesterday (16 June) by a Hong Kong Court because it could not be shown that there is a real risk of asset…
Municipal market investors came aboard today for Washington Metropolitan Area Transit Authority‘s (WMATA) sale of USD 545m of revenue bonds, with the 10-year bonds pricing at a spread of 30bps over the AAA MMD benchmark, according to the preliminary wire. The strong reception was due in part to a new…
After the Great Recession hit in 2008, the bank loan market all but froze up, giving way to a rise in direct lending. Now, more than a decade later and in the throes of yet another market crisis, private investors are once again finding the opportunity to step in and fill…
Concerns over social distancing, the rising cost of debt financing and due-diligence difficulties were some of the topics panellists addressed on the Nordic M&A update webinar held by the Swedish Chamber of Commerce for the UK, hosted last Thursday (14 May). The Nordic M&A market has suffered badly with the…
In early April, Pyrolyx USA Indiana LLC, a tire recycling plant based in Terre Haute, IN, became one of the first companies to report a bond default tied to the COVID-19 health crisis. The company announced on 6 April that it was closing its two facilities in Indiana and Germany and would…
Recent trades in Florida Development Finance Corporation (FDFC) bonds issued for the Virgin Trains USA Passenger Rail Project are “worrisome,” bond market veteran JR Rieger told Debtwire Municipals in an interview yesterday [21 April]. “From my perspective, the trades we’re looking at for Florida Development 6.5s of 49 are worrisome for the…
For more than a century the last words in fine dining in Brooklyn were Gage & Tollner. But for the last 15 years, the Fulton Street storefront in downtown Brooklyn that once housed the gaslight-era restaurant instead housed costume jewelry, a tattoo artist and an Arby’s. For more…
Riverside County, California plans to issue up to USD 730m in pension obligation bonds (POBs) this week, and although it may be a successful issuance, timing-wise, the county is making a huge mistake by not making adjustments to retiree benefits, said California Senator John Moorlach (R) in an interview with Debtwire…
CLOs have fueled the expansion of the leveraged loan market in recent years, driving coupons to record lows. Now companies they’ve lent to for years are finally offering juicy returns on new debt—but many CLOs are unable to invest. A few weeks before the pandemic sparked a record-breaking stock…
Funding from the Federal Reserve’s new TALF program should start flowing in mid-to-late May, according to an investor, two lawyers and a financial advisor. Several of the sources agreed that the program is likely to be expanded to include more assets. Fouad Onbargi, managing director at EA Markets and…
By Tanvi Gupta March madness took a toll on CLOs as Moody’s and Standard & Poor’s downgraded 4.25% of the portfolios in the US and 1.84% in Europe to triple C or below in just one month (some of these were already triple C rated, only to fall further).
The Federal Reserve Board and a Congressional stimulus package helped douse the municipal market’s recent fire sale, but Nicholas J. Foley cited an issue involving big mutual funds and said market health might have ultimately improved had the burning been allowed to continue a bit longer. Munis saw…
Hotels are emerging as the first wave of commercial real estate borrowers to seek debt relief from lenders in the pandemic as cancellations quickly cut off their daily cash flow, according to two large special servicers and a property adviser. CWCapital along with master servicers it works with and…
As the specter of earnings evaporation haunts many US companies directly impacted by social distancing measures, bankers and distressed funds are exploring opportunities to provide capital injections to companies facing temporary dislocations. Case in point, Citi is exploring a potential rescue financing package for AMC Entertainment, after receiving a reverse…
Debtwire, an Acuris company is proud to be the supporting partner of the 9th Asia Pacific Syndicated Loan Market Awards by The Asia Pacific Loan Market Association (APLMA). The winners of the awards were announced by broadcast on 12 March 2020 honouring the outstanding achievements in the syndicated loan market. Debtwire was the exclusive data provider for the awards, supplying all the data and league tables for 25 award categories. APLMA members were asked to vote for which banks, law firms and non-bank financial institutions were qualified to receive awards in the categories of "Asia Pacific Loan House of the Year", "Loan House of the Year" by country, "Law Firm of the Year" by sector and "Deal of the Year" by sector.
With global markets in freefall and US cities increasingly restricting business and social activity, the COVID-19 pandemic has more or less shut down the primary market for leveraged loans. It’s unclear how long the shutdown will last, but it spells trouble for near-term refinancing efforts. With that in…
It’s 2016 all over again in the energy sector. Only this time the pain could be worse. An oil price war between Russia and Saudi Arabia coupled with severe demand concerns stemming from the economic impact of the COVID-19 outbreak have once again caused investors to hit the eject…
Mallinckrodt is the first borrower to test the high yield bond and leveraged loan markets in over a week, after several issuers postponed deals or withdrew from the market entirely. But the drugmaker’s deal does not mean debt markets are open again, said six buyside and sellside sources. Within the…
Asset-backed and mortgage credit markets gyrated both up and down during one of the most dizzying weeks for financial markets but there was one thing that left investors hopeful about their sectors: liquidity. Traders and investors were reluctant to pinpoint the impact on structured product and credit risk transfer…
By Daniel Strauss When Hewlett-Packard (HP) won a price-fixing court case against one of its suppliers last month, the ruling marked a windfall for the plaintiff and further validated an opt-out litigation strategy that’s ripe for third party capital, according to multiple legal and litigation funding sources. In the HP matter…
The green trend was a topic that permeated conversations at the Nordic M&A Forum last week in London, organised by the Swedish Chamber of Commerce for the UK. The importance of environmental, social and government (ESG) issues and impact investing has been a topic for many years, but LPs have become…
Chapter 12 family farm bankruptcy filings soared in 2019 to their highest level since 2010 as unusually brutal weather heaped more stress on an agriculture sector already reeling from the trade war with China and multiple years of low commodity prices, according to court filings, an economist and a farmer.
Powered by the Funds Data platform, Debtwire and its sister product Creditflux, have collaborated to produce Private Credit Perspectives, a new report that sheds light on the biggest trends from H1 2019. Showcasing the uniqueness of the Funds Database, it highlights key news items to have impacted the market,…
London, United Kingdom, 15 October 2019: Debtwire, the leading provider of expert news, data and analysis on debt markets worldwide, today announced the launch of the new Funds Data platform. With data that goes back to 2009, Funds Data provides users with extensive global coverage of over 400 funds active…
Powered by the Funds Data platform, Debtwire and its sister product Creditflux, have collaborated to produce the third edition of European Direct Lending Perspectives. Showcasing the uniqueness of the Funds Database, it highlights key news items to have impacted the market, fundraising data, direct lending league tables and interviews…
If New Jersey and other pension-pressured states look for federal help during a possible upcoming recession, the Manhattan Institute’s Steven Malanga sees just one option: a special bankruptcy provision like the one created for Puerto Rico. Were the US Congress to create something akin to the Puerto Rico Oversight, Management,…
by Rachel Butt Bulge bracket banks have laid the groundwork for a borrowing base reckoning in the oil and gas space this November, when most reserve-based loans come up for redetermination, according to two lenders, six buysiders, and two industry bankers. Downbeat commodity price projections published by a handful…
Hong Kong, September 26, 2019 – Debtwire, the leading provider of expert news, data and analysis on global leveraged credit, today announced the launch of Indian bankruptcy data on its Restructuring Data platform. The 2016 launch of India’s new Insolvency and Bankruptcy Code created an unprecedented opportunity – but researching these…
Across the US, more than 50m students made their way back to school this month, but some of the largest districts in the country will continue to struggle with declining enrollment. The Los Angeles Unified School District (LAUSD) forecasts that enrollment will continue to decline to 536,202 in 2021-2022, from 621,188…
Alder Hill, a once-active CMBX6 short investor, sold out of its investment positions this summer, according to a source familiar with the company and a source briefed on the company’s activities.The company is closing its doors, according to the source familiar. The hedge fund, launched in 2014, had two…
One week after the regents of the University of Alaska voted to consolidate operations amid a large state funding cut of USD 136m, it remains to be seen exactly how the university system will achieve cost savings in fiscal year 2020. The option chosen by the regents does not offer…
The US Virgin Islands’ (USVI) Waste Management Authority (WMA) has a budget that doesn’t properly cover the costs of disposing solid waste, which leaves the territory at risk of a public health crisis, Adrian Wade Taylor, WMA Interim Executive Director testified yesterday (30 July) to the Senate Committee on Finance. …
Debtwire Municipals hosted a webinar today, Tuesday, 30 July, on the current economic and legal conundrum that is impacting Puerto Rico’s debt restructuring and leadership. Our journalists and analysts discussed: General obligation support agreement — which claims it does and does not cover Puerto Rico Electric Power Authority…
Hong Kong Airlines’ (HKA) key shareholders have settled their quarrel, enabling HNA Group to regain undisputed control of the carrier, large shareholder Zhong Guosong told Debtwire. Management of the Hong Kong carrier informally told some credit investors over the past two weeks that it thought a settlement was reached,…
As the opioid epidemic continues across the US, multiple drug companies, pharmaceutical distributors and other businesses are finding themselves the target of thousands of lawsuits, in federal and state courts, seeking to hold them financially responsible for fueling the crisis. In this Special Report, the Debtwire court and legal analyst teams sketch…
The largely unregulated state-based residential Property Assessed Clean Energy (PACE) bond programs are headed for increased regulation and standardization that will likely boost their popularity among investors, according to market participants. PACE bonds are taxable munis issued by local governmental entities that finance energy improvement upgrades to residential homeowners…
Puerto Rico’s Financial Oversight and Management Board (FOMB) has paved the way for a 2020 exit from Title III with its new deal with USD 3bn of general obligation (GO) bondholders, said FOMB executive director Natalie Jaresko, even as stakeholders threw cold water on the agreement. “We’ve reached a…
The Municipal Electric Authority of Georgia (MEAG) is seeking to stop JEA from taking action in a federal district court in Florida over a power purchase agreement (PPA) associated with the Vogtle nuclear plant expansion project. MEAG filed an emergency motion to reopen its case in the Northern District of Georgia, Atlanta Division,…
It has been more than five months since Pacific Gas & Electric (PG&E) commenced its Chapter 11 cases and, although some progress has been made, the company’s future and path forward is still largely uncertain. Wildfire liabilities continue to mount, California Governor Gavin Newsom is putting pressure on shareholders, and the California…
Cook County Circuit Court Judge Neil Cohen today denied the City of Chicago’s request for a temporary restraining order (TRO) to block state Comptroller Susana Mendoza from diverting state grant funds to the city’s pension funds. The city’s lawsuit is tied to a relatively young Illinois law that allows the…
Breaking up with Pacific Gas & Electric (PG&E) is hard to do. But the San Francisco Public Utilities Commission (SFPUC) and other municipalities across California are evaluating the possibility of doing just that, seeking to take advantage of a groundswell of public discontent in the wake of PG&E’s wildfire-driven collapse into bankruptcy, which…
Missouri Circuit Court Judge James Van Amburg last week affirmed Platte County’s legal right to drop its appropriation pledge backing bonds issued for a struggling Kansas City mall, Debtwire’s Caitlin Devitt …
The Metropolitan Pier and Exposition Authority (MetPier) this month privately placed USD 36.8m of bonds backed by a new credit with Morgan Stanley, with a second deal in the works, according to Jason Bormann, MetPier’s director of treasury and capital management. It’s the first time MetPier in Chicago has borrowed from its net operating…
New Chicago Mayor Lori Lightfoot (D) is “smart to keep property taxes on the table” as the city begins to consider how to tackle its financial challenges, said Alderman Scott Waguespack (D), who was confirmed today as chair of the powerful City Council Finance Committee. As finance chair, Waguespack also said…
Marc Rosenthal, chief investment officer of MP Securitized Credit Partners, is betting the CMBX6 rally is growing long in the tooth and sees two foreclosed malls in CMBX6 deals — and other troubled properties like them — as breaking points for the trade that’s gripped the index’s BBB- and BB…
A US Appeals Court’s ruling on Puerto Rico’s special revenue bonds will reverberate throughout the municipal bond market, panelists said today at a meeting of the Municipal Analysts Group of New York (MAGNY). Jim Spiotto, a managing director at Chapman Strategic Advisors, said that, while the court case should be…
A Delaware Chancery Court Judge today lopped off one claim of tortious interference against Nuveen LLC in Preston Hollow Capital’s suit, alleging the mutual fund giant engaged in an illegal scheme to cut its smaller competitor out of the municipal bond market. Vice Chancellor Sam Glasscock III’s decision axed Preston Hollow’s claim of…
On 30 April 2019, Singapore’s Court of Appeal delivered its much-awaited decision on Empire Capital Resources Pte Ltd’s proposed scheme of arrangement. On the surface, the Court’s decision to prevent Empire – a Berau Coal Group company – from convening a creditor meeting due to what the court called “woefully inadequate” financial disclosure is…
Debtwire Municipals hosted a webinar today on the impact of cannabis on state and local budgets. Our journalists and analysts discussed: The current status of legalization nationwide The budget and credit impact on states where marijuana is decriminalized The expected budget and credit impact on states where decriminalization is in…
The leveraged loan market is warming up after a frosty start to the year. But the improved conditions have collided with a slowdown in M&A action during the first quarter, leading to a surge in dividend financings as originators stretch to fill the new issue pipeline, according to Debtwire data and…
Northern California’s rolling hills flash a vivid green this time of year, soaked with spring rains. But come June, the arid summer browns vast swaths of vegetation, leaving literal mountains of kindling for fire. California is in a race against time. Another potentially explosive wildfire season is just around…
What previously seemed like a relentless decline in investor protections for new leveraged loan deals not only abated in the first quarter of 2019, but in some respects actually reversed course, according to data from sister publication Xtract Research. A big catalyst for the change is lower demand for…
Venezuela’s competing governments ready PdVSA 2020 payments, alternatives as 27 April looms 17 April 2019 | 18:06 BST Venezuela’s two competing governments are readying interest payments and evaluating options for Petroleos de Venezuela’s (PdVSA) 8.5% 2020 senior secured bonds, highlighting the struggle between de facto President Nicolas Maduro and…
Bank Audi performs well despite challenging operating environment in Lebanon and Turkey – FY18 Credit Report 16 April 2019 | 04:46 BST Document(s) Bank Audi – FY18 Credit Report | PDF Bank Audi – FY18 Credit Report | XLSM Bank Audi,…
Tunisia plans international syndicated loan in 3Q19 15 April 2019 | 09:20 BST The Government of Tunisia plans to raise an international syndicated loan by the third quarter this year, said two sources familiar with the situation. The sovereign has sounded out appetite among banks to raise between EUR…
General Shopping 4Q18 Credit Report – Bondholders have failed to stop asset dividend and they know what is coming 12 April 2019 | 20:38 BST Document(s) General Shopping 4Q18 Credit Report | PDF General Shopping e Outlets do Brasil (GSB) bondholders Moneda Latinoamerica and Inversiones…
The competing appeals on the Essar Steel India creditor-allocation levels could finally clear up two of the key remaining ambiguities encumbering India’s bankruptcy regime: whether judges can impose changes to a resolution plan and how a resolution plan should treat secured creditors with vastly different collateral claims. The Supreme Court today…
Gulf Marine Services hires Evercore to advise on capital raise; Seafox lies in wait following stinging critique 11 April 2019 | 17:15 BST Gulf Marine Services Plc (GMS), a stressed UAE-based offshore service vessel company, has hired investment bank Evercore as a financial advisor, said three sources familiar…
On Thursday 4 April, the Pennsylvania Turnpike Commission Owner Operator Independent Drivers Association,…
OEC bondholders want adjustments to restructuring proposal; lack of guarantees remains an issue 10 April 2019 | 23:14 BST Odebrecht Engenharia e Construcao (OEC) bondholders consider the debt restructuring proposal that the Brazilian company presented this week insufficient, due to the lack of guarantees, according to a source close…
Tewoo remits 6 April coupons; aims to keep bonds current while working on revising other debt 04 April 2019 | 09:28 BST Tewoo Group has remitted funds offshore to cover the 6 April coupons on its USD 300m, 4.625% due-2020s and USD 200m, 5.5% due-2022s, said a company source…
New York (April 3, 2019) – Xtract Research, an Acuris company, today unveiled a new covenant scoring system to help quickly assess how risky an issuance is and how it compares to others in a similar market while making it easier to push back on aggressive terms. Each…
Debtwire hosted an online roundtable discussion on Hexion Holdings’ recent Chapter 11 filing. During the live event, Debtwire reporters and analysts discussed the company’s restructuring support agreement, USD 700m debtor-in-possession financing, and post-bankruptcy projections. The webinar featured commentary from Associate Editor Kyle Younker, Senior Credit Analyst Seth Crystall and Legal Analyst Sarah Foss and was hosted…
Oceanwide faces tough liability management as operations unlikely to provide much cash flow 02 April 2019 | 08:00 BST Document(s) Oceanwide – 9M18 Credit report | PDF Oceanwide Holdings- 9M18 financials | XLSX Oceanwide Holdings Co, a Shenzhen-listed property developer-turned-financial services…
Jamie Sprayregen, the architect and head of Kirkland & Ellis’ global restructuring team, may be a stranger to coffee (never had a cup in his life), but he is no stranger to failure. He was not accepted by most of the colleges, law schools or law firms to which he…
On analysis by …
Amid financial challenges, the plan by Connecticut State Colleges and Universities (CSCU) to consolidate the state’s 12 community colleges is a risky move, said Matthew Warshauer, professor of history at Central Connecticut State University and a vocal opponent of the consolidation plan. The structural change would consolidate the 12 individually accredited…
China Huiyuan Juice Group Limited has indicated that it belatedly transferred the funds today for the coupon on its USD 200m, 6.5% bonds due-August 2020, said two creditor sources. The coupon, which was originally scheduled for 16 February, a Saturday, actually became payable the next business day, but has a 30-day…
In Memoriam, Xavira Neggers Crescioni March 20, 1967 – February 22, 2019 It is with great sadness and heavy hearts that Debtwire and its parent company, Acuris, announce the passing of our treasured friend, dear colleague and tenacious reporter, Xavira Neggers Crescioni on February 22, 2019. Xavira had a vibrant…
Southern Company, parent of Georgia Power, is seeking to speed up work on the expansion of the Vogtle power plant in Burke County, Georgia, to meet cost and schedule targets. Southern Co. expects productive work at the nuclear project to increase and will refine its construction plan, Chief Executive Thomas…
Secured bond issuance skyrocketed in January, as the increased cost of leveraged loan funding drove borrowers toward cheaper alternatives. Issuers such as TransDigm, Commscope and Dun & Bradstreet all pivoted to print large secured bonds, in a dynamic stemming partly from the Fed’s increasingly dovish outlook. Issuers have priced USD 8.8bn of secured bonds…
The Puerto Rico Electric Power Authority’s (PREPA) latest proposed restructuring support agreement (RSA) for the utility’s USD 9bn in debt is going nowhere fast, said a source close to the situation and three sources familiar. “The number of parties working at cross purposes has created a level of cacophony and…
[The Inside Track is a Debtwire podcast series featuring in depth and intimate conversations with today’s restructuring market leaders. It is a platform upon which guests will share the lessons they’ve learned throughout their careers guiding distressed companies and municipalities, as well as their constituencies, through the most challenging, complex,…
The direct effect on the municipal market of Pacific Gas & Electric’s (PG&E) pending bankruptcy will be limited, as the utility has only USD 103m in tax-exempt bonds payable solely from PG&E’s revenues. An additional USD 762m is backed by bank letters of credit (see Excel link below). Of more…
Zimbabwe was in the hot seat this week as rioters took to the streets of Harare and Bulawayo to protest the government’s latest fuel price hikes. The violent police crackdown that ensued, with reports of up to eight deaths, will compromise a government intent on clearing billions of US dollars…
The Puerto Rico Financial Oversight and Management Board (FOMB) rejected USD 6bn in general obligation (GO) debt, arguing in a new objection filed on Monday (14 January) that the commonwealth breached its debt limit as early as March 2012. Puerto Rico has failed to count Public Building Authority (PBA) debt —…
The European non-performing loan (NPL) market reached a new peak in 2018 with disposals totalling EUR 205.2bn in gross book value (GBV), according to the new European NPL FY 2018 report, published by Debtwire ABS.
Rebecca Dorrian, Managing Director, Morgan Stanley “One of the questions we debate with investors is how quick will the ratings agencies be in this cycle given previous experience in the mortgage market,” said Rebecca Dorrian, managing director at Morgan Stanley, speaking at the Creditflux CLO Investor Summit…
China Development Bank support appears to be the last hope for HNA Group-affiliated Hong Kong Airlines (HonAir)’s redemption of USD 550m 6.9% bonds due 20 January, said six buysiders, including at least three holders, as well as two sellsiders. The assumption is rooted in HNA management’s indication in late December that the…
Some historically black colleges and universities (HBCUs) are struggling to keep their doors open — and their origin story has a direct correlation to their current difficulties, said Harry L. Williams, president of the Thurgood Marshall College Fund. Cheyney University, the first HBCU, was founded in 1837, and there…
Cyber risk is a worry for municipal bond investors, and the tight labor market hasn’t helped, T. Rowe Price municipal credit analyst Linda Murphy said in an Interview with Debtwire Municipals. Competition for talented Information technology (IT) professionals makes it difficult, particularly for local governments, to guard their IT systems…
While several major ballot measures targeting climate change failed during the midterm election, reality will catch up with spiraling costs, which have not been fully captured by the credit rating agencies, according to several market sources. Although Fitch Ratings said in a report in May that credit downgrades…
The Republic of Congo’s trade finance creditors have formed a consortium to negotiate the reprofiling of sovereign and sovereign-guaranteed debt, but discussions have stalled due to a lack of government engagement, said a source close to and a source familiar with the situation. The consortium includes commodity traders Glencore and…
Debtwire Municipals hosted a webinar this morning (13 November) on the current status of two public power authorities in the US — the Municipal Electric Authority of Georgia (MEAG) and the South Carolina Public Service Authority (Santee Cooper). Our team of journalists and analysts discussed myriad developments…
Orchids Paper recently retained Houlihan Lokey as it shifts gears to consider a bankruptcy filing after prior plans aimed at an out-of-court balance sheet fix fell flat, according to two sources familiar with the matter. The struggling tissue product manufacturer began exploring strategic alternatives in March and…
Distribuidora Internacional de Alimentación (DIA), the Spanish discount chain, issued a major profit warning on 15 October, which prompted S&P and Moody’s to downgrade the company by several notches from IG to BB-/Ba2.
Platte County, Missouri was in the news last month after Moody’s Investors Service imposed multiple-notch rating downgrades on various bond issues of the county and the Platte County Industrial Development Authority (IDA). The downgrades occurred on 14 September after…
Two Toys ‘R’ Us suppliers have filed suit against ETG Capital Advisors in New York over unpaid put fees, accusing the Maglan Capital affiliate of breach of contract, unjust enrichment and fraud. DGL Group Ltd. and Happy Threads LLC signed claims purchase agreements with ETG in the…
Alessia Pirolo, Debtwire’s Head of NPL Coverage, was interviewed on BBC World News about Italy’s current debt crisis and what it means for the country’s finances. Watch the full clip here.
The recent slide in the price of US Treasuries (from a yield of 2.85% in the last week of August 2018, to around 3.20% by mid-October) has potentially cracked the upwardly floating glass bubble in which the equity markets – and asset prices in general – have been riding. The…
Debtwire Municipals hosted a webinar this morning (16 October) on the 2018 midterm elections in five key states: California, Connecticut, Illinois, Michigan and Pennsylvania. Our team of journalists and analysts discussed the effect of the gubernatorial elections on policies affecting the municipal market, such as state aid to…
by Farhin Lilywala, Paula Seligson and Anastasia Donde Uber is working with Morgan Stanley on outreach related to raising around USD 1.5bn via an unsecured bond deal, said two buysiders and two trading sources. The company has outlined a dual-tranche structure that includes an eight-year non-call…
A request for proposals (RFPs) shows that the Puerto Rico Electric Power Authority (PREPA) is considering any and all fuel options—not just natural gas—as long as they are cheaper, according to documents reviewed by Debtwire Municipals. “To the extent that potential suppliers have alternative ways to supply acceptable…
On 26 September, co-owners of the Vogtle 3&4 nuclear plants …
by Reshmi Basu Nine West sponsor Sycamore has threatened to direct its Belk portfolio company to discontinue selling Nine West products if parties can’t reach a litigation settlement that’s to the private equity fund’s liking, according to three sources familiar with the matter. The threat from Sycamore to Nine…
BlackRock is expanding responsibilities of its securitized debt group to oversee potentially enormous amounts of consumer and real estate loans for big investors looking to improve on returns and quality available in bonds, according to one of the company’s top money managers. The manager of USD 1.85tn in fixed-income…
Simon Walker, head of loan markets and syndicate at Mizuho Americas, has left the bank barely a year after he joined, amid high-level disagreements over its strategy in leveraged finance, according to two people familiar with the situation. Mizuho, which reported a 4.4% decline in profit for fiscal year 2017,…
A Singapore lawsuit initiated by Oro Negro bondholders against the Mexican oil driller and its executives has been dismissed due to a lack of jurisdiction, a spokesperson for the bondholders and a source close to the situation told Debtwire today. The Singaporean judge that has been handling the…
The plan by Berkeley, California, to use blockchain technology to issue microbonds later this year could revolutionize the municipal bond market, said Vice Mayor Ben Bartlett in an interview with Debtwire Municipals. A microbond or minibond is a smaller issuance of a traditional muni bond – about USD…
Editor’s note: This updates Debtwire’s earlier previous Digicel story from this afternoon. The update adds new reporting in paragraph 10 on the 2020 bondholder group orgnaizing with legal counsel.] Digicel (Caa1/C) has amended its exchange offer for USD 3bn in bonds, removing a proposed USD 640m intercompany loan…
Oi SA’s (Oi) approved reorganization plan stated, among other restructuring measures, that the company may enter mediation with its creditors over disputed claim amounts. Following the plan, the Restructuring Court recently ordered the creation of an online mediation proceeding, to provide the stakeholders with an opportunity to consensually…
Midtown Acquisitions, an affiliate of hedge fund Davidson Kempner, is demanding full payment of a loan that the Puerto Rico municipality of Bayamon cannot pay, according to documents seen by Debtwire Municipals and Bayamon’s deputy mayor. Midtown and Bayamon officially signed on to a three-month forbearance agreement this…
by Will Caiger-Smith A string of giant cross-border LBOs launching next week is set to provide a crucial test of investors’ appetite for risk, amid mounting concerns over the increasing popularity of leveraged loans and the impact of tighter monetary policy on borrowing costs. These supersize deals could be…
Petroleos de Venezuela (PdVSA) is planning to honor approaching principal and interest payments on senior secured USD 2.5bn 8.5% 2020 bonds, even as the cash-strapped Venezuela state-owned oil company faces mounting short-term debt obligations, a source at PdVSA and a source familiar with the matter told Debtwire. PdVSA…
by Anastasia Donde, Paunie Samreth and Tanvi Acharya Papa John’s International, the publicly traded pizza franchise company, has enlisted Bank of America and Lazard to pursue strategic alternatives including a possible sale, according to two sources familiar with the situation. The move comes as members of Papa Johns’ board clash…
Mediobanca has appointed ex-Deutsche Bank credit trader Joel Bensoor as head of loan trading. In this role, he is tasked with building and strengthening Mediobanca’s loan franchise. Creditflux understands this will involve emerging markets loan trading, but also a broader array of loans and related products, potentially including secondary…
Among the selloff in Turkish bonds over recent days, lenders’ subordinated bonds have fared the worst, as fear mounts the securities could be written-off if the unfolding economic crisis is not resolved swiftly, said market participants. The lira’s downward spiral has resulted in deteriorating capital levels at Turkey’s banks,…
Russian banks targeted by the Defending American Security from Kremlin Aggression Act (DESKAA) are likely to be the biggest losers if the bill is implemented even if the state steps in to support them, as Russia feels the pinch from US government infighting, according to a London-based lawyer and portfolio manager.
Two of Chicago’s pension funds recently announced higher discount rates, resulting in significantly lowered pension liabilities. The city is now considering pension obligation bonds (POBs) of up to USD 10bn, which, if issued, would further decrease liabilities of one or more city pension funds. Chicago’s business and civic leaders are…
South Africa’s fate is inextricably linked to Eskom. Not only is the state-owned electricity company too big to fail, given its political importance, but the presence of ZAR 350bn (USD 26.33bn) of contingent guarantees handcuffs the sovereign to it. Lately, Eskom’s standalone credit ratings have slipped markedly to several notches…
The Government of Qatar has ridden out a full year following its boycott by three GCC states and Egypt. But far from scrabbling for survival, the peninsular monarchy looks in fighting form with growing sources of alternative funding and a widening network of influence globally. On 5 June 2017, Saudi Arabia, the United…
Congressional lawmakers have circulated more than 20 pages of detailed legislative language to have the Department of Energy (DOE) take over the embattled Puerto Rico Electric Power Authority (PREPA), according to documents seen by Debtwire Municipals. Still in rough draft form, a bill tentatively titled the “Puerto Rico Energy Stabilization and Hurricane…
Puerto Rico’s restructuring and the presence of the Financial Oversight and Management Board (FOMB) is expected to last decades as the scope of the Puerto Rico Oversight, Management and Economic Stability Act (PROMESA) becomes clear. Three restructuring attorneys, two creditors, a constitutional attorney, and one minority party lawmaker agreed…
US loan investors are fighting back against terms which they believe are effectively turning supposedly senior secured loans into unsecured agreements. Some are outright rejecting loans which feature excessively borrower-friendly language, while others are lobbying rating agencies to assign lower assumed recovery rates to certain deals. According to Creditflux’s…
Direct lending fund investments are popular with institutional investors, but leverage facilities linked to these funds are also starting to attract attention. Creditflux understands that PensionDanmark has recently partnered with Credit Suisse to lend to direct lending funds. The €31 billion Copenhagen-based pension scheme is the second real…
Vivo Energy’s first-ever US dollar bond is causing stark disagreement on how it stacks up to its closest comparable, fellow Africa-exposed fuel distributor Puma Energy. Three buysiders polled by Debtwire argued that Vivo’s lower leverage, higher rating and high-profile branding warranted pricing flat or cheap to Puma, whereas another three argued…
Even prior to the lira’s dramatic decline in recent weeks – the currency is down more than 15% so far this year – the Republic of Turkey was being eyed up by restructuring advisors and lawyers on the lookout for the next big emerging market distressed destination. On…
In our recent trends reports we have discussed at length the substantial erosion of covenants and lender protections in European leveraged loans over the course of the last couple of years. We continue to see sponsors and borrowers pushing through ever looser documentary terms, which lenders are often compelled to…
CIFC Asset Management looks to have made a major breakthrough in its bid to establish a European credit business with the $17 billion asset manager rumoured to be hiring Dan Robinson from Apollo Global Management. London-based Robinson has been at Apollo for the last three years, heading the firm’s European…
Certain holders of Andrade Gutierrez Engenharia’s past-due USD 344m 4% 2018 bonds have been in talks with law firms ahead of a potential bond exchange offer, according to three sources familiar with the matter. After an expected financing package from Pimco has become increasingly difficult to close, the Brazilian…
Eskom, the South African state-owned utility, has hired Lazard as financial advisor, according to three sources close to and a source familiar with the situation. The company issued a request for financial advisors earlier this year to assist on refinancing options, with some dozen or so ‘Big Four’, international…
Richard Johns, formerly executive director of the Structured Finance Industry Group, has left the organization, according to a letter sent to members last Friday. His departure follows months of wrangling among board members concerned about his leadership style and compensation package, according to four people close to the situation. Johns’s…
The European mid-market is on track to opening up to CLOs, according to sources familiar with the sector. The asset class has long been thought of as too illiquid in Europe to support the CLO vehicle, but growing diversity in direct lender portfolios combined with a tightening on spreads in…
Listed Greece-headquartered gaming technology group Intralot is under pressure on material contracts in several regions, which could curtail EBITDA, turn the group free cashflow negative and send actual net leverage adjusted for minority interests heading towards the 7x mark. That together with a sector repricing has hit its 2024 bonds,…
Kalle sponsor Clayton, Dubilier & Rice (CD&R) is planning to seek a covenant reset after the German sausage casings maker veered off budget as a result of intensifying competition in the US, according to three sources familiar with the situation. CD&R has retained PWC to prepare an informal IBR,…
Société Générale (SocGen) is showing around debt secured against the Egmont I and II buildings in Brussels, said two sources familiar with the situation. The properties were bought by Korea Investment Management Co. from Cofinimmo for EUR 370m earlier this year. The French bank provided a loan reflecting 65%-70% of the value, said the…
OVERVIEW 2018 year-to-date has seen hitherto unprecedented levels of substantive and sustained documentary tightening in European high yield bonds in our experience at Xtract Research. We first covered several covenant improvements we had observed in our Xtract Europe 1Q 2018 Review. We are encouraged to note that the…
In the intellectual property race between China and the US, China Oceanwide may have found the most effective tool yet: overpay for a troubled US insurer whose IP could be invaluable back home. On the surface, Oceanwide’s run at Virginia-based Genworth Financial aims to give the real estate-focused conglomerate entry to US insurance markets.
Bank of America Merrill Lynch and Morgan Stanley are marketing a UK CMBS backed by last mile logistics properties, BAMS CMBS 2018-1, according to a source close to the situation. Investor calls will be available from Wednesday (27 June) until the end of the week and a site visit will take…
In July 2014, Boparan Finance plc, the finance subsidiary of UK based food manufacturer 2 Sisters Food Group, issued three series of high yield bonds (the “Notes”): £250 million 5.25% senior notes due 2019, £330 million 5.5% senior notes due 2021 and €300 million 4.375% senior notes due 2021. The…
SGB-SMIT invited its lenders to the Netherlands last Friday (15 June), taking them on a site visit to its Nijmegen plant and giving them an update on its business performance. The Germany-based power transformer maker, which has been underperforming for months and plans to request a covenant…
Andrade Gutierrez bondholders have become restricted in order to begin negotiations for an exchange offer of the company’s past-due USD 345m 4% bond, according to three sources familiar with the matter. Some holders are starting a due diligence process, the first source familiar said. Andrade has been engaged…
Document(s) Efromovich profile 19 June 2018 | PDF Germán and José Efromovich control Colombia-based Avianca Holdings. José controls OceanAir Linhas Aéreas (Avianca Brasil). Other businesses, mostly held via Synergy Group Corp and Fundación HJDK, includes shipyards, aircraft leasing and maintenance, transportation, oil and gas production,…
The US Congress took up legislation last week that would sell federally-held distressed debt and use the proceeds to help fund infrastructure improvements, said municipal advisors Larry Kidwell and Robbi Jones. The bipartisan legislation, House Bill 6104, would sell United States Department of Agriculture (USDA) distressed debt to the…
While Oi S.A.’s (Oi) consolidated reorganization plan was approved by its creditors and affirmed by the Restructuring Court on 8 January, the implementation of some of the key restructuring transactions is contingent on resolving the treatment of ANATEL’s claims. With a waiver recently approved by…
Click here for abridged transcript of Debtwire’s inaugural India Insolvency Summit, sponsored by Deloitte and Clifford Chance. Debtwire held the event in Mumbai in late May, days after Bhushan Steel became the first of India’s so-called “dirty dozen” to complete a bankruptcy resolution process. In…
The BBB- rated Ds of the USD 514m XAN 2018-RSO6 priced at L+ 250bps today, tight of the S+ 295 and S+ 305bps spreads at which comparable bonds from the USD 1.1bn LNCR 2018-CRE1 and the USD 560m ARCLO 2018-FL1 priced last month. The XAN CRE CLO’s USD…
Puerto Rico’s Retiree Committee is asserting a USD 58.5bn claim for pensions and other post-employment benefits (OPEBs) against the commonwealth as of 3 May 2017, according to an unpublished proof of claim seen by Debtwire Municipals. This amount covers the full amount of accrued pension and other…
[The Inside Track is a new Debtwire podcast series featuring in depth and intimate conversations with today’s restructuring market leaders. It is a platform upon which guests will share the lessons they’ve learned throughout their careers guiding distressed companies and municipalities, as well as their constituencies, through the most challenging,…
PetSmart has moved a 16.5% stake in Chewy.com to an unrestricted subsidiary, using its ability to make a sponsor dividend as the mechanism for the transaction, said four sources familiar with the matter. The announcement put investors on alert for more details about the ramifications of the move, which has echoes…
A five-judge New York appeals court panel issued a unanimous order yesterday upholding a lower court’s decision that Davidson Kempner Capital Management did not have standing to sue special servicer C-III over servicing practices. In the 31 May order, the New York Supreme Court Appellate Division panel’s narrowly…
CMBS Monthly Activity Report for May 2018 | PDF Brookfield Asset Management stepped into the politically-charged saga of Kushner Cos’ 666 Fifth Avenue property last month when it was revealed that the company was in late-stage discussions to buy out Vornado Realty Trust’s stake in its…
With CRE CLO issuance gaining in popularity following Blackstone Mortgage Trust’s USD 1bn deal late last year, and with others following suit or considering it, it might seem like CLOs are back and here to stay. But the current enthusiasm for the once-maligned debt vehicle is likely short-sighted, especially for smaller…
Indian bell curve Activity in India slowed slightly in terms of the number of mandates. In 1Q18, the country generated 11 new mandates on a total of USD 20.49bn of debt, compared with 13 roles in 4Q17 on a total debt of USD 18.64bn from seven companies. This…
The planned auction of 15 Sears stores has been pulled from the RealINSIGHT Marketplace website pending a decision by the retailer as to whether to sell the properties individually or as a portfolio, according to James Shevlin, a managing director at CWCapital, which owns the online platform. The decision…
CASE PROFILE – Sevenhills Healthcare Private Limited | PDF Sevenhills Healthcare, a Visakhapatnam, Andhra Pradesh-based hospital operator, was admitted into bankruptcy by the National Company Law Tribunal’s (NCLT) Hyderabad bench on 13 March 2018 at the behest of a petition from Axis…
Italian banks with plans to use the government’s guarantee scheme for NPL portfolio securtization will continue to do so, despite the political crisis currently causing extreme volatility in the financial markets, according to sources polled by Debtwire. Two sources familiar with the situation and four people briefed on the…
Genneia has grown a lot in the last year. It acquired a 245MW power plant in Tucuman, a 51MW wind farm, and was awarded a 19MW biomass project and three solar projects totaling 82MW. Additionally, it has several wind projects under construction that should be inaugurated in the next…
State Bank of India has recently brought together domestic bank lenders on 19 distressed Indian thermal power projects to try to hash out resolutions before the Reserve Bank of India’s end-August deadline to put them into bankruptcy, according to three sources with knowledge of the matter. The interbank talks,…
Alessia Pirolo, Debtwire’s Head of NPL Coverage, was interviewed on CNBC’s Squawk Box discussing Italy’s improving non-performing loans situation. Watch the full clip here. …
Among the many players involved in the privatization of the Puerto Rico Electric Power Authority (PREPA), none have any solidarity, and that’s a problem for the governor’s 18-month time frame, said four industry experts. “When a government decides to privatize an asset it must state whether it’s doing so…
Document(s) QGOG Constellation 1Q18 Credit Report | PDF On 9 May 2018, QGOG deferred interest payments on its 9.5% senior notes due 2024 and its 6.25% senior notes due 2019. It decided to use an available 30-day grace period in order to advance ongoing discussions…
Market sources say that AIG is embarking on a return to CLO management with the insurance giant acquiring Covenant Credit Partners. The transaction will see the entire Covenant team being absorbed into AIG, including managing partner and well-known CLO portfolio manager Marc Boatwright. AIG has a long track record…
Napier Park managing director Serhan Secmen spoke with Creditflux’s Hugh Minch after his presentation at the Creditflux Symposium earlier this month. Click here for the full video. …
The judge overseeing Puerto Rico’s Title III bankruptcy proceedings erred in a ruling that stands to upend the revenue bond market, the National Federation of Municipal Analysts (NFMA) argued yesterday (16 May). Judge Laura Taylor Swain dismissed on 30 January a lawsuit brought by Puerto…
Document(s) Clisa 1Q18 Credit Report | PDF Nothing has gone right for Clisa recently. The depreciation of the ARS and the increase in interest rates has highlighted the Argentine construction and waste disposal company’s higher vulnerability relative to other Argentinian corporates, as its revenues are…
Brazilian President Michel Temer announced in an official speech that, on 9 May, the Government sent to the National Congress a reorganization law reform bill, describing it as “a very modern text, which has been examined and re-examined by proficient national jurists and restructuring specialists that worked with…
Debtwire Municipals hosted a webinar this morning on Illinois’ upcoming election and what it means for the state’s credit. Senior Reporter Caitlin Devitt and Head of Research Greg Clark discussed the three front runners for governor of Illinois, along with ongoing budget negotiations. CLICK…
Reliance Communications(RCom) was admitted into a bankruptcy resolution process today by a Mumbai bench of the National Company Law Tribunal (NCLT) in response to an application by trade creditor Ericsson India, according to court proceedings attended by Debtwire. The admittance order is the culmination of a litigation process…
A Chicago office building at 120 South LaSalle Street is being marketed for sale and is likely to trade for about USD 160m, said two sources familiar with the asset. That price indicates a capitalization rate of about 6%, both sources said. The 660,000 sq ft building is…
A recent Reuters’ article indicated that lenders are successfully negotiating a provision to block borrowers from transferring material intellectual property out from under secured lenders. Reuters reported that “secured lenders are now including language in loan documents, known as the ‘J Crew blocker,’ to stop companies transferring intellectual property, including…
Aircel Ltd‘s resolution professional is seeking to raise around INR 3.5bn (USD 51.93m) in so-called interim finance for the bankrupt Indian wireless network operator, according to three sources with knowledge of the matter. The funds would enable the company to continue to operate its four functioning circles while resolution…
JBF Petrochemicals Ltd’s lead lender, IDBI Bank, is planning to file a bankruptcy petition against the KKR-backed project, according to two sources with knowledge of the situation. The state-owned bank is to file its petition at National Company Law Tribunal’s (NCLT) Mumbai bench, the two sources added.
By Tanvi Acharya The Rockport Group is working with Alvarez & Marsal and law firm Richards Layton & Finger as the footwear retailer continues to evaluate options for a balance sheet fix, including a potential restructuring, according to two sources familiar with the matter. The mandates complement…
The Italian non-performing loan (NPL) market is on track for a record year in terms of securitisations and mergers and acquisitions of servicers and NPL management platforms, according to analysis of Debtwire and Mergermarket data. The data will be presented at the Debtwire Italian Restructuring Forum on…
US investment firm Pimco is expected to provide financing to Andrade Gutierrez Engenharia of around USD 500m, according to three sources close to the matter. The Brazilian construction and infrastructure company has been trying to raise around USD 300m to finance the maturity payment for its…
US Leveraged Loan Market Prevails Over 1Q18 Equity, Bond Volatility Debtwire’s Leveraged Insights Report Explores Key Q1 2018 Trends New York, April 25, 2018 - Debtwire, the leading provider of expert news, data and analysis on global leveraged credit, today released its 1Q2018 US Leveraged Insights report and found that the US leveraged loan market remained wide open for business in 1Q18 and easily overcame an increase in volatility in the bond and equity markets. The report itself features an overview of the most recent and relevant trends impacting leveraged loans, high yield bonds, covenants and CLOs all in one place. Produced by a team of experts, the report incorporates a combination of private and public data, and features more than 200 slides of analysis mined from Debtwire’s vast leveraged finance network.
New York, April 25, 2018 - Debtwire, the leading provider of expert news, data and analysis on global leveraged credit, today announced the launch of two new offerings: Restructuring Data and Debtwire Par. For 15 years, Debtwire has provided the investor and advisor communities with market-moving news, key data points and in-depth research across the lifecycle of a credit. Extending Debtwire’s legacy of trust, these new products promise to transform and improve the way financial professionals make informed business decisions.
European Leveraged Finance Issuance Falls, Though Investors Eagerly Seize New Supply Debtwire’s European Leveraged Insights Report Explores Key Q1 2018 Trends London, April 25, 2018 - Debtwire, the leading provider of expert news, data and analysis on global leveraged credit, today released its 1Q2018 European Leveraged Insights Report and found that the European leveraged finance market continued to operate in an environment in which investors eagerly snapped up any new supply in Q1 2018. The report itself features an overview of the most recent and relevant trends impacting leveraged loans, high yield bonds, covenants and CLOs all in one place. Produced by a team of experts, the report incorporates a combination of private and public data and features more than 200 slides of analysis mined from Debtwire’s vast leveraged finance network.
Shell North American LNG, Kindle Energy, and ITC Holdings are floating a bid for the Puerto Rico Electric Power Authority (PREPA) as part of the utility’s privatization, according to documents seen by Debtwire Municipals. The three-company consortium is targeting PREPA’s generation business and its transmission and distribution (T&D)…
US investment firm Pimco is expected to provide financing to Andrade Gutierrez Engenharia of around USD 500m, according to three sources close to the matter. The Brazilian construction and infrastructure company has been trying to raise around USD 300m to finance the maturity payment for its USD 344m 4%…
A deal for Maefield Development and Fortress Investment to purchase their partners’ shares in the project underway at 701 Seventh Avenue will likely be financed by Natixis Real Estate Capital, said two sources familiar with the situation. The planned sale came to light after Winthrop Realty Trust said…
The RealINSIGHT Marketplace auction of 16 Sears locations has been pushed out until next month despite “tremendous response” from over 200 interested parties, according to James Shevlin, a managing director at CWCapital. Sears is marketing 16 US Midwestern and Texas locations for sale, as reported (see …
Document(s) Latin America Mandates Report (1Q18) | PDF Debtwire’s 1Q18 Restructuring Deals and Advisory Mandate Report recorded a total of 246 active advisory mandates for Latin American companies in our coverage universe that are engaged in restructurings or are in need of assistance navigating financial…
The Puerto Rico Electric Power Authority (PREPA) has re-established 70% of Puerto Rico‘s energy grid generation capacity and expects full restoration by noon today after yesterday’s (18 April) general blackout, El Nuevo Dia reported. The paper cited PREPA’s interim executive director, Justo González Torres, as telling radio station WKAQ…
Robust restructuring landscape emphasized by pre-packaged and pre-arranged bankruptcy plans Debtwire’s Restructuring Insights Report Finds Explores Key 1Q2018 Trends New York, April 18, 2018 - Debtwire, the leading provider of expert news, data and analysis on global leveraged credit, today released its 1Q2018 Restructuring Insights report and found that restructuring activity was driven by large retail, oil and gas, and media bankruptcies with a heavy emphasis on pre-packaged and pre-arranged plans. Powered by Debtwire’s new Restructuring Data offering and produced by Debtwire’s legal analysts, the report features case level information that includes filing and exit strategies, involved creditors and their disclosed holdings as well as retained advisors and their disclosed fees.
Document(s) Kalach family profile 18 April 2018 | PDF The Kalach family controls textile manufacturer Grupo Kaltex SA de CV , which developed from a business founded in the 1920s by six siblings. Kaltex also owns over 650 retail stores and, with other Kalach family companies,…
Document(s) Vilela de Queiroz profile April 5 2018 | PDF The Vilela de Queiroz family, which consists of several first-generation siblings and their children, controls São Paulo-listed Minerva SA, Brazil’s third-largest beef producer. The company also exports live cattle and produces leather. In addition to…
Connecticut’s agreement to help pay Hartford’s debts for the next 20 years is expected to improve market confidence in other cities across the state, said Office of Management and Budget Director Ben Barnes. Barnes, also the chairman of the Municipal Accountability Review Board (MARB), made his remarks during an…
A review of Puerto Rico’s 23 March fiscal plan provides little reason for optimism once the analysis goes beyond the plan’s cash flow summary. The summary indicates that cash flow surpluses, net of any debt service payments, are to occur in every fiscal year from FY18 through FY23. By…
Document(s) Batista profile update 28 March 2018 | PDF The Batista family founded and controls meatpacker JBS, which expanded globally via acquisitions with strong financial support from BNDES and other government entities. J&F Investimentos, through which the family holds JBS, also owns Banco Original, cosmetics…
This story was originally published on Debtwire on 20 March 2018. Government of Mozambique bondholders are underwhelmed by the around 35-point net present value haircuts outlined yesterday (20 March) by the Ministry of Economy and Finance and its advisors, Lazard and White & Case. Three options were presented, with notional…
Investors are still analyzing the potential pricing fallout from liquidation plans for Toys “R” Us as certain exposed senior bonds traded or covered around a 98 area price this week, according to a portfolio manager, a debt advisor, and data from Solve Advisors and ICE Data Services. “People…
Though less aggressive than previous versions, Kentucky’s latest pension overhaul still breaches inviolable rights and will likely face legal challenges, three public employee advocates told Debtwire Municipals. “Over the last decade, there’s been substantial changes on the benefit side, so from our viewpoint a lot has already been done…
[This is a reissue of intelligence #2596566 which was originally published in the early hours of this morning, 5 March]   Under intensifying pressure from investors, Lebara capitulated on Friday (2 March) and published a…
The CLO market has welcomed a new manager. Permira Debt Managers launched its debut 2.0 transaction via Bank of America Merrill Lynch, according to market sources, pricing a €362.5 million deal yesterday named Providus CLO I, which is expected to close on 11 April. Providus CLO I is…
Besieged by investors frustrated by the incomplete disclosure of financial statements, Lebara published a…
Joseph Otting, the head of the Office of the Comptroller of the Currency, said today that it’s up to banks to decide what level of risk they are comfortable with in leveraged lending, and that bankers shouldn’t consider themselves bound by the leveraged lending guidelines issued in the wake of…
Kentucky’s latest proposal to address USD 42bn in pension liabilities still imposes a high burden on local government, said two retiree advocates and a pension fund official. The proposal arrived last week in the form of …
The Puerto Rico Aqueduct and Sewer Authority‘s (PRASA) access to community disaster loans (CDL) is contingent upon it commencing a Title III proceeding, according to an official letter written by Puerto Rico Governor Ricardo Rossello. In a letter dated 26 February to US Congress leaders—posted on the…
EU Momentum Monitor – 26 February | XLSX In macro news last week, the UK unemployment rate unexpectedly rose for the first time in two years to 4.4% in the…
A EUR 25m clip of Steinhoff bank debt…
Following a quiet half-term week, the market remained in a relaxed mood this week with just 13 deals in syndication totalling EUR 6.7bn of institutional debt. However, market players expect March to set things on fire. Two chunky deals turned up the wick already with buysiders getting ready to…
EnBW-controlled German energy company VNG Group has mandated Barclays to explore selling a minority stake in its gas transportation subsidiary ONTRAS Gastransport, three sources familiar with the matter said. The review of VNG’s options is at an early stage, and if a sale process goes ahead it will likely…
Care UK’s sponsor Bridgepoint has kick-started plans to part-exit its UK-based health and social care solutions provider in a process led by Rothschild, five sources familiar said. It held a lender education meeting was held on 1 February but banks, concerned about negative precedents in the sector, are approaching the…
Puerto Rico’s special revenue and general obligation bondholders got some important answers in two separate rulings issued by Judge Laura Taylor Swain in January. Unfortunately, those answers created a whole new set of questions for the larger municipal bond market. On 30 January, Judge Swain dismissed two lawsuits brought…
Renewable energy in South Africa faces a tough job competing with a lengthy to-do list in 2018, but the country’s programme carries renewed hope following the departure of President Jacob Zuma, according to four bankers polled by Debtwire. Eskom, the state-owned electricity monopoly, has been subject to state-capture and mired in corruption allegations,…
Debtwire Municipals had two guest participants to discuss President Donald Trump’s (R) latest infrastructure plan as well as financial and hurricane recovery in Texas. We also discuss the Puerto Rico Electric Power Authority’s potential debtor-in-possession financing and Detroit Public Schools. This week’s participants are Debtwire Municipals’ Greg Clark, Caitlin…
My Home Move (MHM), a UK conveyancing firm, is exploring a sale process, two sources familiar with and two sources briefed on the situation said. KPMG is advising on the process, the sources familiar and the first source briefed said. The mandate was awarded last September, the first source…
Debtwire Municipals with Debtwire North America hosted a webinar this morning discussing the future of Puerto Rico and the Puerto Rico Electric Power Authority (PREPA). Journalists and analysts discussed the implications of recent court decisions by Judge Laura Taylor Swain and the most recent fiscal economic growth plans. …
More E&P borrowers are expected to raise DrillCo funding this year as management teams aim to boost development while also curbing leverage, according to multiple industry and financing sources. Thus far, growth capital piling into the nascent energy sector recovery has been largely cut off from the public equity…
The LSTA has prevailed in its lawsuit against the SEC and the Federal Reserve, with an appeals court ruling that US CLO managers are not subject to credit risk retention laws under the Dodd-Frank Act. The LSTA filed the lawsuit in October 2014, arguing that CLO managers are not…
GNC Holdings has retained Alvarez & Marsal to help draft a restructuring contingency plan should the company’s efforts to address near-term maturities fall flat, according to three sources familiar with the situation. The vitamin and supplement retailer is under the gun to address a March 2019 maturity of a USD…
We asked managers to predict the year ahead across a range of credit strategies. Overall, they had a positive outlook. Direct lending: some sectors are at risk of major correction “Within the CLO structure itself, we predict steepening, with triple A/double A spreads expected to be resilient and…
Bills to the Puerto Rico Electric Power Authority (PREPA) from Whitefish Energy tally USD 144.9m as of last week, Christian Sobrino Vega, Governor Ricardo Rossello’s designee to the Financial Oversight and Management Board, told Debtwire Municipals. PREPA has paid USD 36.7m of that total, leaving a pending balance of USD 108.2m, said…
UK-based value fashion retailer New Look faces an uphill battle following an extended and accelerating sales slump. The struggling retailer – which operates almost 900 outlets, mainly in the UK but also across Europe, China and the Middle East – has recently overhauled its executive management team and is implementing…
The Puerto Rico Electric Power Authority (PREPA) this week left USD 8.1bn in bondholders with an increasingly unfavorable outlook following Governor Ricardo Rossello’s proposal for partial privatization of the utility. The governor’s 22 January statement was superseded two days later by release of PREPA’s new fiscal plan, which provides…
The head of CLO management at Canyon Capital Partners has left the asset manager, ending a near two-decade affiliation with the $20 billion-plus firm. Dominique Mielle was a partner and senior portfolio manager at Canyon in Los Angeles and is best known for building the firm’s CLO management business, which…
Moody’s Investors Service downgraded 26 classes of FFELP ABS subject to CFTC swap margin posting requirements on Thursday, following years of advocacy work on behalf of former Moody’s rating analyst and Debtwire ABS alum Bill Harrington. Harrington, now a senior fellow at the Croatan Institute, lobbied the rating agencies, SEC,…
A CMBS benchmark deal aimed at boosting price discovery and secondary market liquidity is on the wish list of a number of attendees at the CRE Finance Council conference in Miami this week, according to industry executives speaking on the sidelines. CREFC’s CMBS Secondary-Market Liquidity Task Force is considering…
Xtract Research published North America High Yield Bond covenants year in review: the 2017 WHYBOTY™ Awards (Worst High Yield Bonds of the Year). Click here to view the special report. Please contact Valerie Potenza and James Wallick with any questions. …
“Green” bonds are a growing trend within the municipal bond market, but the benefits to the structure may be limited as the green label is widely regarded as a marketing technique without much regulation or pricing benefits, several market sources say. Most issuers use green bonds to attract more…
With issuers and their advisors squeezing in the last of the year’s business before the late December slowdown, the Debtwire newsroom was humming with activity these past few weeks. …
Debtwire today released the November European Leveraged Insights report highlighting significant trends in the leveraged loan and high yield bond markets. click here to request.
Exco Resources, a Dallas, Texas-based oil and natural gas producer, has been inching towards bankruptcy for the better part of 2017. Absent a waiver or other forbearance from certain of its lenders, the company, which at one time counted U.S. Commerce Secretary Wilbur Ross as a board member and substantial…
Debtwire will host an online roundtable discussion on Cobalt International Energy today (15 December) at 1pm ET. Our team of journalists and analysts will provide listeners with a brief overview of Cobalt’s financial position, and the challenges it faces as it embarks on its Chapter 11 case. We will then hold a live Q&A during which…
Xtract Research recently published PetSmart has dividend and investment capacity under its credit documents to dividend the stock of newly acquired CLICK HERE for the special…
Debtwire’s weekly Market Players round-up highlights people moves and new business formations in the leveraged loan, high-yield and distressed markets. Please send any submission ideas to: …
Investment bankers are already starting to push their compliance teams to allow aggressive deals in leveraged finance, as the stars begin to align for a loosening of post-crisis guidelines intended to curb excessive risk-taking, according to numerous leveraged finance bankers. After the guidelines were officially opened up for …
Lone Star Funds is turning to residential rentals as it grapples with the dregs of more than USD 30bn in delinquent loans purchased over the past several years, according to two sources familiar with the matter and an investor. The USD 70bn private equity firm is embarking on an aggressive…
Document(s) Steinhoff 1H17 Financials | XLSM Steinhoff International, the South-African based home retailer‘s share price dropped over 80% in the last week with the announcement on 6 December that…
The final 2017 edition of the Middle Market Junction Podcast brings in W. Todd Holleman, a partner and head of the BDC practice at King & Spalding, and Brian Garfield, a director in Lincoln International’s valuations and opinions group to discuss how business development companies (BDCs) mark-to-market (MTM) their…
Debtwire today published a Credit Report on Cenveo. CLICK HERE to access the report in Excel format. …
Steinhoff‘s — a South Africa-headquartered retailer — creditors are contemplating organizing ahead of a possible restructuring, and are seeking advice on the situation from law firms, according to two sources familiar with the situation. Kirkland & Ellis is working with a group of convertible noteholders, the size of which is…
Debtwire today published a …
Revlon’s sizeable and potentially vulnerable capital structure, along with its lackluster earnings, have put the iconic cosmetics maker on the top of distressed investor and advisor watchlists. In recent days, advisory firms including Houlihan Lokey have reached out to Revlon bondholders in an effort to organize a group, according to…
Debtwire today published its Distressed Retail Watchlist for December. CLICK HERE to access the Excel version. …
DLA Piper …
Debtwire Municipals hosted a webinar this afternoon discussing the “Altered States” in the US, which includes Connecticut, Pennsylvania, New Jersey and Illinois. Moderated by Greg Clark, head of municipal research at Debtwire, journalists focused on the finances for these four states and their financial prospects. …
Morgan Stanley Private Equity is in exclusive talks to acquire animal feed maker Manna Pro, said two sources close to the situation. The potential deal values the business at around USD 330m, one of the sources said. It is being financed with a roughly USD 200m unitranche credit facility, the…
As Saudi Arabian Oil Company (Aramco) prepares for an expected initial public offering (IPO) in the coming year, discussions are underway with banks about the merits of issuing a pre-IPO debut international bond or sukuk, according to four sellside sources familiar with the situation. With negotiations concerning the IPO…
Debtwire today published the first episode of The Docket Report, a new podcast hosted by court reporter Pat Holohan. The show will talk about the courts, with frequent diversions to discuss whatever comes up. In this episode, …
Homer City Generation made it through Chapter 11 in just 36 days, confirming a prepackaged plan that swapped USD 641m in secured notes for equity and provided the reorganized company with USD 150m in exit financing. The company, which owns a coal-fired independent power production plant in Homer City,…
Debtwire this morning (4 December) hosted an online roundtable discussion on Cumulus Media and its recent bankruptcy filing. During the live event, our reporters and analysts explored the company’s restructuring support agreement, its valuation, and potential issues with its unsecured noteholders. The webinar featured commentary from Debtwire associate editor …
The federal government’s tax reform plans are driving municipal issuers to rush into the market. This week we discussed deals for Chicago and All Aboard Florida in the Muni Lowdown. The federal changes may also have a large impact on the Commonwealth of Puerto Rico’s financial recovery. This week’s participants are Debtwire Municipals’ Paul Greaves, Seth Brumby,…
Expro, the UK oil and gas services group, is facing a ticking restructuring countdown clock, with about USD 20m in interest payments due on its term loan B and revolving credit facilities, and a grace period for reporting financials that expires in mid-December. In this cross-border Special Report, Debtwire’s legal analyst…
Radio broadcasting company Cumulus Media filed for Chapter 11 protection last night (29 November) with a restructuring support agreement (RSA) in hand. The RSA would give 83.5% of the company’s reorganized equity to its holders of its term loan, and the proposal is backed by holders of about 69% of those lenders.
Underperformance shouldn’t be an excuse to not test the market in today’s frothy environment, just ask Triangle Capital and Medley Capital. In the past 24 months, both business development companies cut their respective dividends. In recent weeks, they also effectively hit the auction block, likely buoyed by the returns that another struggling BDC…
Click Shardul Amarchand Mangaldas, joins Debtwire Asia senior editor Chaim Estulin to discuss the development of the country’s nearly year-old Insolvency & Bankruptcy Code. This podcast was recorded on 24 November, one…
European pre-paid telco Lebara’s bond is getting off to a rocky start. The group issued a EUR 350m senior secured 2022 FRN paying a chunky Euribor+ 675bps at the end of August. But an…
An ad hoc group of Pacific Drilling debtholders filed a Rule 2019 showing over USD 1.3bn of debt holdings, split between USD 953.7m of Ship Group A debt and USD 353.7m of Ship Group C debt. In total, the group controls 49% of Pacific Drilling’s Ship Group A debt and 80.5% of the company’s…
On 2 November 2017, Venezuelan President Nicolás Maduro announced a “restructuring and refinancing” of Venezuela’s foreign debt obligations which could prove to be among the most complicated and challenging restructurings in recent years, if not ever. In that same announcement, Maduro placed the blame and the need for such a…
Judge Laura Taylor Swain recently denied Peaje Investments LLC’s request for a preliminary injunction directing the Puerto Rico Highways & Transportation Authority (PRHTA) to resume depositing with a fiscal agent toll revenues that had been pledged to pay holders of PRHTA bonds, including Peaje.[1] After the governor of Puerto Rico…
A Synchronoss Technologies, Inc. bondholder group, representing a majority of the company’s USD 230m of convertible notes, sent the company a letter on 15 November alleging that the Synchronoss’ 14 November sale of subsidiary Intralinks Holdings, Inc. constituted a sale of “substantially all” of the company’s consolidated assets. Under the notes’ indenture, a sale…
When Oi SA (Oi) filed its Judicial Recovery protection request back in 20 June 2016, it requested that the Brazilian court also oversee the restructuring of the debt of certain foreign affiliates organized for the sole purpose of raising foreign investments, namely Dutch affiliates Portugal Telecom International Finance BV (“PTIF”) and Brasil Holding Cooperatief UA…
Energy sector conditions—principally the drop in oil prices—have led to a wave of restructurings this year for borrowers engaged in oil and gas exploration and production (E&P). The unique operations and capitalization of an E&P company present a plethora of industry-specific restructuring issues for practitioners and investors. This …
Kramer Levin bankruptcy partner Momentive Performance Materials, and the third-party release litigation that has come to define …
Debtwire Municipals hosted a webinar this morning discussing the US Virgin Island’s restructuring and recovery from Hurricanes Irma and Maria. Our team discussed the potential impact of federal aid and capital constraints in the USVI prior to the hurricanes making landfall. …
Petroleos de Venezuela (PdVSA) has awarded a “provisional” mandate to multinational law firm Hogan Lovells for the state-owned oil company’s debt restructuring and refinancing, according to a source close to the matter and two sources familiar with the matter. Venezuelan government officials …
A group of 22 of Argentina‘s provinces is struggling to reach agreement on the proposals presented by the national government regarding tax reform and the province of Buenos Aires’s (PBA) claim over the ARS 50bn (USD 3bn) Fondo del Conurbano, said two sources close to the matter. Governors of 20 provinces, including Cordoba, Santa…
China City Construction Holding Group (CCCH), the keepwell deed provider of China City Construction International Corp’s (ChiCit) defaulted dim-sum bonds, appears to have lost ownership of at least 254.5m shares in Bank of Zhengzhou as part of a HKD 540m loan agreement reached last year, according to a Hong Kong court judgment.
Oi‘s management continues to negotiate with the three large groups of bondholders to try to reach na agreement before the 7 December creditor meeting, CEO Marco Schroeder told Debtwire. The Brazilian telecom is doing so despite already …
Venezuela and state-owned oil company Petroleos de Venezuela (PdVSA) bondholders were not presented with any restructuring plans at a very brief meeting in Caracas today but were instead asked by Venezuelan Vice President Tareck El Aissami to “help” the government restructure its debt, two sources with knowledge of the discussions said. Investors are now…
Following months of restructuring talks with its creditors, Pacific Drilling has filed for Chapter 11 protection without a plan in place to reorganize its assets. Struggling to weather the extended downturn in oil prices, the offshore driller is trying to rework approximately USD 3bn in liabilities. Proposals with an ad hoc group…
The ad hoc group of Toys R Us Taj noteholders that provided the company’s USD 375m DIP package has added four new members—who together hold USD 194m of Taj notes—three of which come from the ad hoc committee of Taj noteholders that had previously opposed the DIP. Owl Creek Asset Management, River Birch Capital and Stonehill Capital Management joined…
Thomas M Cooley Law School, Sweet Briar College, and New York Law School were the top three enrollment decliners among the 151 private universities and colleges that we reviewed in our first edition of Private Higher Education Watch. Enrollment losses between FY12 to FY16 for the above three schools…
It seems like Camposol’s refinancing was ages ago, not just one year. Given the outstanding harvest of avocados that increased 139.8% year-over-year (volumes up 119.1% and prices up 15.5%), the Peruvian grower’s EBITDA totaled USD 43.8m during 3Q17. Camposol is also investing in converting semi-intensive shrimp ponds into intensive ponds,…
he sale of Polish TV cable operator Inea is attracting a wide-range of leverage pitches, as banks disagree over the valuation, growth potential and capex requirements of the business. Banks backing bidders have pitched anything between high 4x and 8xEBITDA multiples, three sources familiar with the matter said. Sponsor Warburg Pincus may have to come down from the PLN 1.5bn (USD 415m)…
Debtwire’s legal analyst team today published a primer on healthcare restructuring issues. …
Debtwire’s daily earnings round-up for 9 November by country: Argentina AA2000, an airport operator, has announced its 3Q17 results: Sales of ARS 3.4bn (USD 193.1m), up from ARS 2.8bn in 3Q16 Operating income of ARS 1.2bn, up from ARS 1.1bn in 3Q16 Net income of ARS 597.5m, down from…
In a Drydocks World LLC hearing last Thursday (2 November) in the Dubai International Financial Centre (DIFC) Courts, the Dubai World Tribunal members threw out Mashreqbank’s classification argument, said two sources close to the situation. The judges ruled before hearing opposing counsel Clifford Chance’s counter arguments. At the core of Mashreq’s claim…
QGOG Constellation has started negotiations with certain banks to extend the maturities of its project finance debt facilities, following the settlement of the …
A group of 22 Argentine provinces led by Cordoba, Santa Fe and Entre Rios are finishing up a joint proposal to present to President Mauricio Macri at a 9 November meeting that aims to be the start point of a negotiation to achieve a “fair” distribution of public resources starting in 2018, two sources close…
Debtwire presents the latest in a series of profiles of the families behind Latin America’s corporate borrowers. This profile examines Brazil’s Klabin family, which controls pulp and paper manufacturer Klabin SA. …
[This updates Debtwire intelligence #2534597 originally published earlier today, to provide further the details from the judgment] Agrokor dd secured a recognition order today from an English court for its Croatian extraordinary administration proceedings under the Cross Border Insolvency Regulations (CBIR). The judgment was handed down by His Honour Judge Paul Matthews – sitting as…
An ad hoc group of noteholders has filed a 2019 statement showing collective holdings of USD 155m (77.88%) of Armstrong Energy Inc.’s USD 200m 11.75% senior secured notes due 2019. The ad hoc group, which is party to a restructuring support agreement with the debtors, is led by BlueMountain Capital Management, USD 56m (28.1%) and Caspian Capital, USD…
With allegations against Harvey Weinstein mounting, his namesake company and its lenders are making preparations for an increasingly likely Chapter 11 filing, said three sources familiar with the matter. The Weinstein Company (TWC) recently engaged the consulting firm FTI to advise on restructuring contingencies, said two of the sources. Meanwhile,…
[The headline and third paragraph of this report have been clarified to state, as per William Brandt, the trustee for CFG’s Peruvian assets, that he expects to complete the assets’ sales in, rather than before, 1H18. The rest of the article remains the same.] The Chapter 11 trustee for China Fishery Group’s (CFG) Peruvian assets will “fairly soon”…
Global A&T Electronics (GATE), an outsourced semiconductor assembly and test services company based in Singapore, has reached a deal with noteholders to restructure its USD 1.12bn in bond debt through a prepackaged Chapter 11 bankruptcy in the Southern District of New York and end a nearly four-year legal battle with noteholders.
GenOn Energy’s plan of reorganization faces a stern test from a wave of objections filed by GenOn Mid-Atlantic (GenMA) and REMA creditors and the US Trustee. The various objections threaten plan confirmation and put at risk the pre-petition deal entered into by GenOn, NRG Energy (GenOn’s non-debtor parent), and various noteholder groups representing class controlling stakes…
Revlon, Inc. (NYSE: REV), the cosmetics giant controlled by Ron Perelman, reported a 52.2% drop in year-over-year EBITDA for the third quarter. This is causing …
Oro Negro parent Integradora de Servicios Petroleros Oro Negro has been declared in bankruptcy, according to court documents and two sources close to the situation. The concurso, or bankruptcy declaration, followed a request made by the Mexican oil driller in October. The concurso of…
The Federal Emergency Management Agency (FEMA) warned the Puerto Rico Electric Power Authority (PREPA) about a controversial clause in the Whitefish Energy mandate 10 days before it was amended and executed, confirmed a FEMA spokesperson. On 7 October, PREPA held a meeting with FEMA officials in Puerto Rico to discuss the Whitefish…
Venezuela (Caa3/C/CC) could choose to target only sovereign debt for restructuring or refinancing, and not that at Petroleos de Venezuela (PdVSA), according to a sovereign analyst, a lawyer and two other sources familiar with the matter. The sovereign bonds represent less attachment risk due to state-owned oil company PdVSA’s ownership of oil assets,…
CEEMEA credits cruised through the week, said two traders and two buysiders, as investors calmly faced up to news of Venezuela’s sudden announcement to restructure external debt. So far, state-owned Petroleos de Venezuela SA (PDVSA) 2027s 28% drop in cash price on Friday morning has not been matched in CEEMEA, the buysiders stressed. There was some…
We were pleasantly surprised when Grupo Famsa announced during the 3Q17 conference call that it would sell 10 of 17 properties to raise MXN 1.23bn, after fearing that an initial valuation of MXN 1.1bn for all 17 was too optimistic. On the operational side, the US business continues to disappoint. Now…
On 1 November, telecom provider Windstream Holdings, Inc. again a default notice under the company’s existing 6.375% senior notes…
In the November edition of the …
Inkia Energy (BB-/Ba3/BB) has set initial price thoughts of low 6%-area for a new USD 450m senior unsecured 10-year non-call five-year bond, according to a source close to the process. The deal is expected to price Thursday 2 November, the source added. The Peru-based power generation company was scheduled to finish …
InterCement will likely need to request a new temporary suspension of a financial covenant on its BRL 1.5bn (USD 460m) domestic bonds due 2022 which limits leverage, despite the expected cash increase resulting from the …
Debtwire‘s legal analyst team today published its October Court Spotlight, which provides an aggregated monthly update of the happenings in the major Judicial Recovery proceedings currently pending in Brazilian courts, as well as providing links to further legal analysis and research. …
Armstrong Energy entered Chapter 11 this morning with a restructuring support agreement (RSA) backed by holders of 78% of its USD 191m 11.75% first lien notes, who have agreed to serve as stalking horse bidder in an auction for the reorganized company. The first lien lenders would credit bid USD 90m…
The following hearings are scheduled for today (31 October). Debtwire reporters will monitor the proceedings and provide updates on any breaking news from the courtroom. Avaya: A hearing is scheduled for 10am ET in the US Bankruptcy Court for the Southern District of New York on the company’s plan support agreement…
In this week’s …
Credito Real’s portfolio deterioration goes beyond the simple NPL ratio, which has been in the 2.1%-2.7% range in the last two years. Since CREAL acquired a majority stake in Instacredit during 1Q16, the loan portfolio has grown by 54%. As the portfolio matures, we see a pace of annualized provisions…
The US affiliates of Italian chemical giant Mossi & Ghisolfi filed for Chapter 11 in Delaware yesterday with a USD 100m debtor-in-possession financing facility to fund a sale process. The 13 US debtors report about USD 1.7bn in prepetition debt and blame a lack of liquidity on delays associated with the…
Debtwire today published its monthly Restructuring Advisory Mandates Report, which tracks newly sourced representations for September 2017 in both out-of-court and in-court situations. The report tracks representations of major players in corporate reorganizations, including companies, official committees and ad hoc groups, lenders and bondholders, loan agents and indenture trustees. …
Big Ass Solutions accelerated the commitment deadline for its USD 250m TLB, according to a source close to the situation. Proceeds finance the company’s buyout by Lindsay Goldberg. UPDATE: Commitments now due on Friday (3 November) at 5pm ET, from 8 November before TERMS: Led by Credit Suisse, with…
A Morgan Stanley spokesperson denied wide-spread market chatter that the bank is planning a new non-agency mortgage conduit. Several sources, including two loan investors, a capital markets executive and a former Morgan Stanley banker, say the investment bank’s recent bulk loan purchase activity is consistent with that of a…
A judge in Odebrecht Oil and Gas S.A.’s (“OOG”) Extrajudicial Recovery process—a process akin to the US prepackaged plan—just issued a ruling determining that a recovery process can impact a bank’s claim against a company stemming from debt arising from a drawn Letter of Credit issued to guarantee a company’s bond payment…
Creditors of Ojer Telekomunikasyon A.S. (OTAS) will imminently form an ad hoc committee to negotiate the restructuring of a USD 4.75bn syndicated loan, according to three sources close to the situation. The five-bank-strong committee will comprise three Turkish banks: Akbank, Garantibank and Isbank. There will also be two international banks, said…
Appvion, Inc recently filed for Chapter 11 in hopes of deleveraging its balance sheet. One interesting wrinkle in this restructuring is that since 2001 Appvion has been 100% owned by its employees through an employee stock-ownership plan (ESOP). What treatment might the company propose for ESOP participants in a bankruptcy restructuring?…
Florence Martin, refer to disclaimer on restrictions of use at the bottom of the page. Windstream Holdings, Inc. is in the midst of an exchange offer and consent solicitation targeting subsidiary Windstream Services, LLC’s senior unsecured notes, asking holders to exchange those notes into a combination of new 8.625% senior secured notes…
With the critical holiday season fast approaching, some fixed-income investors are hedging against the risky mall sector, seizing on opportunities in the CMBX and in credit default swaps to bet against retail. Investors are betting against the sector by taking short positions on the CMBX 6 and 7 junior tranches,…
DoubleLine, AllianceBernstein and other top mortgage credit buyers are asking to remove natural catastrophe risk from credit-risk transfer bonds after watching the market quiver in the wake of two hurricanes, according to a letter from the investors’ trade group to the issuers. The Association of Mortgage Investors is recommending…
Several NCSLT private student loan bonds have recovered some of the value they lost in the wake of the 18 September announcement of a USD 20m CFPB settlement over a range of improper servicing practices, according to Finra TRACE data. The bond price recoveries have come as virtually every…
Willkie, Farr & Gallagher bankruptcy partner Mike Niebruegge recently joined Debtwire’s Richard Goldman to discuss the evolution of E&P RBL financing. …
With the critical holiday season fast approaching, some fixed-income investors are hedging against the risky mall sector, seizing on opportunities in the CMBX and in credit default swaps to bet against retail, according to an investor, three research analysts, a trader and a data provider. Retailers have been battling…
The common shares of E&P company Cobalt International Energy, Inc. are listed on the NYSE, and, on 10 October the Exchange …
Flint could enter receivership or bankruptcy without action on a 30-year water contract, according to a court filing yesterday (24 October) by Mayor Karen Weaver’s (D) administration. In its filing, the administration asked the US District Court to deny the Flint City Council’s emergency request to stay or toss a…
Puerto Rico’s Title III bankruptcy judge today signed off on an order protecting federal disaster relief funds from potential recovery efforts by creditors. Judge Laura Taylor Swain signed off on the request from the Financial Oversight and Management Board (FOMB) and Fiscal Agency and Financial Advisory Authority (AAFAF by…
Puerto Rico and its related entities did not default on any of their principal payments during October although eight borrowers failed to pay interest when due. Cumulative principal defaults through October are USD 2.5bn. On 20 September, Hurricane Maria made landfall in Puerto Rico, resulting in extensive and widespread damage.
Ahead of the State of Illinois’ monster USD 4.5bn bond deal set for tomorrow, a few secondary market trades on the state’s bonds seem suspiciously tight, said Greg Saulnier, Municipal Market Data (MMD) analyst at Thomson Reuters. The Prairie State’s USD 4.5bn sale comes on the heels of a …
Debtwire has published an updated Credit Report on Neiman Marcus through 4Q17. CLICK HERE to view the report in Excel format. …
JSL extended its maturity profile and increased its cash position by BRL 1.42bn in July, through the issuance of USD 325m (BRL 1.02bn) in bonds maturing July 2024, and BRL 400m in domestic debentures at its Movida rental car subsidiary, which mature 2019-2022. The Brazilian transportation and logistics specialist is in…
Immaculata University will issue USD 37.72m in revenue bonds in a negotiated sale tomorrow (24 October), with Janney Montgomery Scott LLC as the underwriter. The university suffered significant enrollment declines in recent years, which led to recurring operating losses. New leadership is implementing various enrollment initiatives, which are likely to restrain revenue…
The Yankees didn’t make it. Their bats didn’t show up in Houston, and so there will be no World Series games in the Bronx this year. But maybe next year. Bomber fans can rest assured the future is bright with a young core and deep pockets to purchase hot stove assets. Quite unlike the Yankees…
Incenter Mortgage Advisors is marketing USD 1.82bn in Ginnie Mae MSRs on behalf of an independent mortgage bank, according to two sources familiar with the transaction. The servicing is tied to 9,669 loans with an average balance of USD 188,284, weighted average rate of 3.831%, weighted average servicing fee…
Recent struggles in the regional grocer market aren’t expected to abate any time soon, as Amazon’s recent buyout of Whole Foods, the continued rise in e-commerce and non-traditional venues carrying groceries, such as Walgreens, are expected to continue to eat into their market share. In past 15 months, this has resulted in…
Cherokee, Inc. (CHKE) is a brand marketing platform that manages a portfolio of fashion and lifestyle brands across multiple consumer product categories, such as apparel, footwear, home products and accessories. CHKE is currently in forbearance with its lender, Cerberus Business Finance, LLC through 27 October. The company was not in…
Ghana’s finance minister Ken Olfori-Atta landed in London (19 October), having already visited autumnal New York and Boston, just in time to feel a noticeable temperature drop towards winter. Although billed as a non-deal roadshow, the intention of his trip was to add heat to the African bond market and convince investors to buy into the country’s…
Mediation in Puerto Rico’s five Title III cases has been postponed for two months so the Financial Oversight and Management Board (FOMB) can review the island’s fiscal projections, said two creditors and a government source. “The fiscal economic growth plan (FEGP) no longer applies and the parties were not budging anyway,” said…
Debtwire’s weekly Middle Market Players round-up highlights people moves and new business formations in the leveraged loan, high-yield and distressed markets. Please send any submission ideas to: …
What a Friday opinion. Earlier today, the makewhole premium entitlement and cramdown interest rate. The Debtwire legal analyst team unpacks…
Hard Rock Exploration lender Huntington National Bank has filed a motion to convert the company’s Chapter 11 proceeding to Chapter 7, arguing that the estate is administratively insolvent. The lender, owed USD 26m, pointed to testimony at a 4 October hearing from CEO James Stephens, who said that the debtor and…
Jones Energy recently engaged Jefferies to explore strategic alternatives, said two sources familiar with the matter. The company is considering selling assets or entering into a drillco transaction that would result in bringing in external capital, the sources added. Jones is under pressure to pursue such transactions from two activist…
Brokers Mission Capital Advisors and DebtX are separately marketing USD 149.5m of non- and sub-performing CRE loans and REO assets, according to multiple sources familiar with the transactions. The sales include USD 109.5m in retail and hotel loans, according to the sources. Mission is marketing the roughly USD 47m…
Several of the Federal government agencies on whose shoulders it would fall to implement changes to securitization rules and regulations recommended by the US Treasury Department last week have little to say about whether, or when, they’ll get to work implementing those suggestions. Spokespersons for the OCC, Federal Reserve and…
BRF SA is a Brazilian company focused on various food products for the local and international markets. It sells meat (both fresh and processed), as well as a range of final products such as margarine, mayonnaise and ready-to-eat meals. BRF’s revenue in 2Q17 was BRL 8bn, a 5.7% decrease relative…
CVC Capital, IK Investment Partners, and China’s CITIC Capital are among shortlisted bidders for quality control and compliance-services provider AsiaInspection, said two sources familiar with the deal. Four to five final bidders, all private equity firms, have been selected to place final bids, said the sources. Sellside adviser UBS initially invited as many…
Auto Masters, a chain of nine car dealerships operating under a “buy here, pay here” model, has filed for Chapter 11 in order to block a state court lawsuit from its secured lender that sought the appointment of a receiver to run the company. The dealerships sell primarily to low-income,…
Developer Ian Bruce Eichner is close to completing a USD 204m financing package backed by inventory of residential condominiums at his Madison Square Park Tower project, said three sources familiar with the situation. The loan has ballooned to that amount, up from the USD 180m Eichner was reportedly seeking…
In the October edition of the Middle Market Junction Podcast , Jay Jacquin and James Hadfield of Configure Partners, the newly formed boutique investment and advisory firm, discuss the nuances of smaller restructurings with Debtwire Middle Market editor Jon Berke. The banking executives go over the differences between…
The sale of Danish home furniture group Muuto is forging ahead with management presentations expected to commence in the coming weeks and both local and non-Nordic mid-market sponsors are showing interest in the asset, said a source close to and two sources familiar with the transaction. Banks are expecting to offer all-senior…
The October Debtwire Middle Market Watchlist highlights bonds and loans of levered borrowers that are either engaged in balance sheet restructurings or face imminent pressure to reduce debt. The Debtwire Middle Market universe typically covers credits with funded debt of USD 150m or less and an overall total debt load of USD 300m…
Avaya and its bankers have begun the process of premarketing a USD 3bn exit facility to a select group Avaya’s prepetition lenders and new investors, according to six sources familiar with the matter. Goldman Sachs leads the effort for a first lien portion of up to USD 2.5bn, but the tranche…
Citadel Servicing Corp. is planning to boost its monthly originations of non-QM loans in the next six months with the help of new incentives to borrowers and brokers, according to CEO Daniel Perl. The lender known for its non-prime non-QM products is targeting originations of USD 125m–USD 150m per…
Eurotorg (part of Euroopt), Belarus’s largest private company and largest food retailer, looks set to offer a yield close to double digits for its debut international benchmark offering to draw EM bond shoppers through its doors. But even this may prove insufficient to bag the deal at the check-out desk, according to a Moscow-based banker,…
Southern Illinois University (SIU)’s descent to junk following the State of Illinois’ two-year budget impasse leaves projects and debt issuance on hold, President Randy Dunn said in an interview with Debtwire Municipals. “We’re still climbing out of junk status, a notch away with the ratings agencies of getting out of junk,” Dunn…
Declining traffic tallies, stiff competition, new restaurant entrants, variable preferences, and lack of relief on the expense-side continue to create a difficult operating environment for companies in the restaurant, food & beverage sectors. According to Zacks Equity Research, 2Q17 was the sixth consecutive quarter of negative same-store sales for the restaurant…
Debtwire Middle Market has been raking in the scoops this fall on esoteric credits in the midcap leveraged finance industry. Front and center on the advisory front was the exclusive that first lien lenders for cloud hosting services provider …
An investor has offered the cash-strapped City of Hartford a USD 55m loan, a source close and a source familiar told Debtwire Municipals. The investor is looking to raise USD 55m off unencumbered collateral, said the source familiar. The offer came as recently as this week, the source close said. However, the…
Investors in legacy non-agency RMBS backed by Puerto Rico mortgages may soon be commiserating with their municipal bond counterparts in the aftermath of Hurricane Maria, according to two investors. At least one investor in non-agency bonds isolated to the island’s loans showed its hand on Thursday with a USD 30m BWIC of…
Competitive bidding and pressure to put record cash raises to work have created an aggressive new paradigm in deal-making—one in which private equity firms rush to close acquisitions before they even nail down committed financing, according to multiple buyout industry sources. Several recent LBOs by firms including Thoma Bravo…
DebtX is marketing USD 83m in re- and non-performing Florida residential mortgages, according to two sources familiar with the offering. The offering is divided into a USD 49.8m pool of 736 performing first and related second liens; a USD 23.3m pool of 330 performing second lien HELOCs; and a USD…
Yields on Renovate America PACE ABS are unchanged to tighter in recent trading despite a spate of negative headlines and prepayments that are higher than expected at origination, according to two sources familiar with Renovate’s securitizations, an analyst and Finra TRACE data. The spread situation has Renovate poised to…
Online small business lender Square Capital plans to sell consumer loans originated under a new program that is currently in the pilot stage, and has already received interest in the loans from investors including hedge funds, according to Jacqueline Reses, the company’s capital lead. Offloading consumer loans from its balance…
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