Lynn's Feed
Aug 18, 2015

TRLPC: US leveraged loans an island in Fed rate hike sea

NEW YORK, Aug 18 (Reuters) – U.S. leveraged loans, the
private market for financing low-rated companies, could
ironically be an island of relative safety when the Federal
Reserve shifts gears and starts hiking interest rates for the
first time in nearly a decade.

Floating rates, senior ranking for debt repayment and
features guaranteeing minimum yields, should lead the asset
class to outperform others including high-yield bonds as U.S.
rates increase, analysts and investors said.

Aug 5, 2015

Navistar sweetens terms on $1 billion loan refinancing

NEW YORK (Reuters) – Truck and engine maker Navistar International Corp sweetened terms to lure investors to a $1 billion loan refinancing, soon after paying hefty premiums to place an asset-backed debt deal on the heels of a federal lawsuit filed against the company.

Wider spreads and enhanced call protection were among features that should ensure the new loan, meant to refinance a smaller amount of existing debt and give the company a liquidity boost, gets done, an investor said.

Aug 5, 2015

TRLPC: Navistar sweetens terms on $1B loan refinancing

NEW YORK, Aug 5 (Reuters) – Truck and engine maker Navistar
International Corp sweetened terms to lure investors to a $1
billion loan refinancing, soon after paying hefty premiums to
place an asset-backed debt deal on the heels of a federal
lawsuit filed against the company.

Wider spreads and enhanced call protection were among
features that should ensure the new loan, meant to refinance a
smaller amount of existing debt and give the company a liquidity
boost, gets done, an investor said.

Jul 9, 2015

U.S. loan funds poised to keep outperforming corporate bond funds

NEW YORK (Reuters) – U.S. bank loan mutual funds outperformed corporate bond funds in the second quarter, and are expected to do so for the remainder of 2015, as investors are turning to shorter-term assets with global economic turmoil unfolding.

Floating-rate leveraged loans typically draw retail buyers when interest rates rise, and also have the advantage of ongoing demand that is surpassing supply, analysts and fund managers say.

Jul 9, 2015

TRLPC: US loan funds poised to keep outperforming corporate bond funds

NEW YORK, July 9 (Reuters) – U.S. bank loan mutual funds
outperformed corporate bond funds in the second quarter, and are
expected to do so for the remainder of 2015, as investors are
turning to shorter-term assets with global economic turmoil
unfolding.

Floating-rate leveraged loans typically draw retail buyers
when interest rates rise, and also have the advantage of ongoing
demand that is surpassing supply, analysts and fund managers
say.

Jul 1, 2015

U.S. loan volume gains momentum, trails year-ago pace

NEW YORK (Reuters) – U.S. syndicated loan issuance bounced in the second quarter from the two-and-a-half-year low set the prior quarter, driven by a renewed push by companies to refinance debt before borrowing costs increase.

Overall volume still fell short of last year’s second quarter, however, constrained by regulatory parameters on high-risk lending and by corporations favoring cash and equity over debt to fund takeovers.

Jun 30, 2015

OCC says banks make progress on following leveraged loan guidance

NEW YORK, June 30 (Reuters) – The Office of the Comptroller
of the Currency (OCC) said banks are making progress
implementing regulatory guidelines after leveraged loan
structures remained weak in 2014, driven by record investor
demand for floating-rate debt and a smaller supply of new
credits.

In its semi-annual risk perspective released Tuesday, the
OCC said that while covenant-lite issuance fell, the percentage
of loans arranged without full lender protections increased to
74 percent in 2014, compared with 60 percent the year before.

Jun 23, 2015

Wall Street faces toughest regulatory challenge yet on new loan review

NEW YORK (Reuters) – Big investment banks are facing their toughest test yet in the current 2015 Shared National Credit (SNC) review, months after regulators warned the banks that the quality of U.S. leveraged loans that they arranged was not as good as the banks claimed, sources said.

Regulators met with banks earlier this year after monthly monitoring started in 2014 revealed that several deals that banks claimed were in “good standing” were riskier than recorded, four people with knowledge of the discussions said.

Jun 23, 2015

TRLPC: Wall Street faces toughest regulatory challenge yet on new loan review

NEW YORK, June 23 (Reuters) – Big investment banks are
facing their toughest test yet in the current 2015 Shared
National Credit (SNC) review, months after regulators warned the
banks that the quality of U.S. leveraged loans that they
arranged was not as good as the banks claimed, sources said.

Regulators met with banks earlier this year after monthly
monitoring started in 2014 revealed that several deals that
banks claimed were in “good standing” were riskier than
recorded, four people with knowledge of the discussions said.

Jun 11, 2015

TRLPC: Alternative lenders gobble up second-lien loans

NEW YORK, June 11 (Reuters) – More U.S. companies including
Compusearch Software Systems Inc are choosing to place
second-lien loans with single alternative lenders rather than
syndicating broadly as lending in the sector shrinks, lenders
and attorneys said.

Pre-placing these loans, like Compusearch Software did with
a $51 million second-lien loan with private equity firm American
Capital Ltd, boosts confidence that a deal will get
done and makes negotiating terms easier, the sources said.