NEW YORK, August 27 (Reuters) – US coal producer Peabody
Energy’s US$1.2bn term loan traded unchanged at around
73-74 percent of face value in the US secondary loan market,
loan traders said on Thursday, following press reports that the
struggling company has hired Lazard Ltd to help to
restructure its debt amid plunging commodity prices.
Secondary pricing on the US$1.2bn term loan which is due to
mature in 2020 held steady on levels seen earlier in the week
before news broke that Peabody is seeking to revise its capital
structure and restructure and reduce US$6.3bn of debt.
NEW YORK (Reuters) – Slumping commodity prices are hitting the secondary loan prices of iron ore, oil services and coal companies as China’s stock market volatility raises fears that demand in the world’s most commodity-hungry economy is cooling and global markets brace for an imminent U.S. interest rate rise.
Secondary bids for Australian iron ore company Fortescue Metals Group gained one point on Wednesday to 82.5-82.5 percent of face value, rebounding from its one point fall on Monday after Shanghai’s stock market saw its biggest drop in eight years. Fortescue’s loan was trading at around 87 percent of face value on July 5.
NEW YORK, July 29 (Reuters) – Slumping commodity prices are
hitting the secondary loan prices of iron ore, oil services and
coal companies as China’s stock market volatility raises fears
that demand in the world’s most commodity-hungry economy is
cooling and global markets brace for an imminent U.S. interest
Secondary bids for Australian iron ore company Fortescue
Metals Group gained one point on Wednesday to 82.5-82.5 percent
of face value, rebounding from its one point fall on Monday
after Shanghai’s stock market saw its biggest drop in eight
years. Fortescue’s loan was trading at around 87 percent of face
value on July 5.
LONDON, April 24 (Reuters) – A $2.06 billion term loan for
sales and marketing agency Acosta Inc is testing the US
leveraged loan market’s ability to refinance existing loans with
high leverage levels as regulators try to curb riskier lending.
The Federal Reserve, the Office of the Comptroller of the
Currency (OCC) and Federal Deposit Insurance Corporation stepped
up efforts to clamp down on new buyouts with higher leverage
late last year, but the position on refinancing existing loans
has been less clear to date.
NEW YORK (Reuters) – Retail investors are returning to bank loan mutual funds following seven straight months of outflows, with the Federal Reserve more clearly signaling an interest rate hike and higher secondary loan market prices starting to attract momentum buyers, investors and strategists said.
The first weekly inflows of $130 million broke a 31-week streak of outflows in the week ending February 18. Although net flows turned negative again with $118 million withdrawn in the week ending February 25, they have moderated and are seen turning positive with Fed rate hikes nearer, these sources said.
NEW YORK, Jan 22 (Reuters) – The term debt financing backing
Apollo Global Management LLC’s buyout of information
technology services provider Presidio Inc is facing pushback
from loan investors wary of an unpopular sponsor, the deal’s
high leverage and issues related to the credit itself.
The $650 million term debt facility has been struggling to
attract enough buyers since the deal was launched in early
January, people familiar with the planned borrowing said.
NEW YORK, Dec 18 (Reuters) – Secondary loan market gains in
January, a typically profitable month for investors, could be
muted in early 2015 if the recent oil price rout and ensuing
drag prolongs into the New Year.
“There should still be some technical support in January,”
said Steven Oh, global head of fixed income at PineBridge
Investments. “But given negative sentiment, that technical
uplift may only offset the current downside pressure, resulting
in a leveling off in January rather than price increases.”
NEW YORK, Oct 28 (Reuters) – TOMS Shoes deepened the
original issue discount on its $300 million term loan B and
raised the Libor spread by 75bp as volatile market conditions
have made it difficult to attract loan investors to the credit,
sources told Thomson Reuters LPC.
Investors also have cited concerns about the “faddish”
nature of the shoe company’s products.
NEW YORK, Aug 8 (Reuters) – Cable company Charter
Communications cut the size of its term debt and made lender
friendly changes on Friday, driven by choppy market conditions,
This is one of a batch of deals facing higher borrowing
costs as investors balk at pricing levels due to growing
volatility in the equity and high-yield markets.
NEW YORK (Reuters) – U.S. secondary loan prices are seeing their first bout of weakness since the beginning of the year, pressured by macroeconomic concern that the Federal Reserve will slow its quantitative easing program which has already crushed high yield bond prices.
US leveraged loans had a relatively small 23bp correction to 98.82 on Thursday but remain well insulated as the only major fund class to see inflows last week. Nearly $1 billion of cash flowed into bank loan mutual funds, compared to a record $4.6 billion outflow from high yield, according to Lipper FMI.