Lynn's Feed
Jul 1, 2014

TRLPC: U.S. leveraged buyout loans may reflect Fed, OCC disparities

NEW YORK (Reuters) – Scrutiny by U.S. regulators is reshaping the leveraged loan market as bankers complain that the Office of the Comptroller of the Currency enforces leveraged lending guidance more stringently than the Federal Reserve.

U.S. commercial banks, which are under tougher OCC scrutiny, have slipped in the underwriting ranks in the second quarter versus a year earlier whereas investment and foreign banks, regulated by a seemingly more lenient Federal Reserve, have climbed in the standings.

Jun 13, 2014

Apollo issues post-crisis record CLO

NEW YORK (Reuters) – U.S. CLO issuance is on track to set a new record in 2014, boosted by a new $1.5 billion CLO from Apollo Global Management which is the biggest CLO for seven years and the largest since the financial crisis.

Managers have already priced more than $52 billion of CLOs this year, which is already 27 percent higher than 2013 and is expected to beat 2007′s annual record of $101 billion, according to Thomson Reuters LPC data.

May 15, 2014

TRLPC: Food and drink M&A binge dishes up new loans

NEW YORK (Reuters) – Food and beverage company tie-ups are heating up, feeding the market for loans backing these mergers in quantities that test 2008 peaks.

A planned $4.8 billion senior secured term loan B helping fund Hillshire Brands Co’s (HSH.N: Quote, Profile, Research, Stock Buzz) pending takeover of Pinnacle Foods Inc (PF.N: Quote, Profile, Research, Stock Buzz) lifts issuance of loans completed or in process to at least $10 billion in this sector so far this year, according to Thomson Reuters LPC data.

Apr 21, 2014

Loan fund investors pull cash with Fed rate hikes on hold

NEW YORK (Reuters) – Retail investors yanked money out of bank loan funds in the latest week, breaking a nearly two-year streak of inflows, as the interest rate hikes buyers of these floating-rate products are counting on now appear likely later rather than sooner.

Federal Reserve Chair Janet Yellen’s reassurances that the Fed will prolong its near-zero interest rate strategy to stimulate the tepid U.S. jobs market and economy, after earlier indicating rate hikes could come more quickly than widely expected, doused the urgency to stock up on loans at current low yields.

Apr 11, 2014

Highly-leveraged U.S. loans continue unabated

NEW YORK (Reuters) – Banks keep underwriting highly leveraged loans for low-rated companies that are drawing U.S. regulators’ attention, Thomson Reuters LPC data show, despite a looming review by the federal agencies that are trying to clamp down on these transactions.

There has been no let-up in deals that could run afoul of year-old regulatory hurdles, which require banks to hold more reserves and possibly pay fines, in the weeks leading up to reviews of their loan portfolios by the Office of the Comptroller of the Currency, the Federal Reserve and Federal Deposit Insurance Corp.

Apr 11, 2014

TRLPC: Highly-leveraged U.S. loans continue unabated

NEW YORK, April 11 (Reuters) – Banks keep underwriting
highly leveraged loans for low-rated companies that are drawing
U.S. regulators’ attention, Thomson Reuters LPC data show,
despite a looming review by the federal agencies that are trying
to clamp down on these transactions.

There has been no let-up in deals that could run afoul of
year-old regulatory hurdles, which require banks to hold more
reserves and possibly pay fines, in the weeks leading up to
reviews of their loan portfolios by the Office of the
Comptroller of the Currency, the Federal Reserve and Federal
Deposit Insurance Corp.

Mar 14, 2014

RLPC: Investors deter some US loan deals, but still issuers’ market

NEW YORK, March 14 (Reuters) – Two deals were pulled from
the U.S. leveraged loan market since late February, but this
fringe resistance is doing little to change issuer-friendly
dynamics that still allow opportunistic companies to push
through aggressive financings, investors and arranging banks
said.

Demand still far exceeds the limited supply of new loans,
preserving the technical status quo, even though it has
moderated from a year amid regulatory uncertainties and asset
bubble concerns.

Feb 4, 2014

RLPC: YRC loan refinancing hauling in up to $250M savings – CFO

NEW YORK, Feb 4 (Reuters) – Trucking company YRC Worldwide
Inc, fresh off a hard-fought Teamsters contract
extension that paved the way for debt restructuring, will save
up to $250 million over the next five years with a leveraged
loan refinancing now in the market, Chief Financial Officer
Jamie Pierson told Thomson Reuters LPC.

The company, on the brink of bankruptcy about two years ago,
got relief late last month from a five-year contract extension
with union members that had voted down a prior version.

Jan 28, 2014

RLPC: Companies still have upper hand in U.S. leveraged loans

NEW YORK, Jan 28 (Reuters) – It’s an issuer’s market again
in 2014 for U.S. leveraged loans, with few detour signs on this
one-way road.

Investors battling for floating-rate assets to hedge rising
interest rates, often favoring secured loans over riskier junk
bonds, are empowering lower-rated companies to keep slashing
yields and whittling away buyer protections.

Nov 28, 2013

More European, Asian firms migrate to US lev loan market

LONDON, Nov 27 (Reuters) – More European and Asian companies
are borrowing in the U.S. leveraged loan market where costs are
low and restrictive covenants do not apply as cash-rich US
investors facing limited deal supply warm to foreign borrowers.

Nearly 30 percent more European companies have raised dollar
loans in the United States this year than in 2012, as the highly
liquid U.S. institutional market moves towards becoming a
global, rather than a regional, market.