Collins & Aikman Bonds Drop Close To Single Digits

Collins & Aikman's bonds and bank debt continued to fall last week on further concerns that its asset sales will generate lower than expected proceeds.

  • 11 Aug 2006
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Collins & Aikman's bonds and bank debt continued to fall last week on further concerns that its asset sales will generate lower than expected proceeds. Its 10 3/4 '11 bonds fell four points to 11. Its term loan "B" dropped to the low 60s from 73 the prior week. "[The company] is in real trouble," said a dealer commenting on the credit.

Collins & Aikman's bonds and bank debt have been on the decline since mid-July, when it forecast it would receive less than it had expected from the sale of assets. "The prognosis on asset sales is murky. People are not comfortable with it," said a trader. He added the company's poor earnings have also spooked the market. Collins & Aikman reported a $25.6 million net loss in June.

The bankrupt auto supplier is selling the assets of its automotive fabric business. It decided in April to exit and unwind most of the business after failing to find a buyer (CIN, 7/6). A spokesman did not return calls.

  • 11 Aug 2006

GlobalCapital European securitization league table

Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 BNP Paribas 14,443 29 18.07
2 Bank of America Merrill Lynch (BAML) 8,264 27 10.34
3 Lloyds Bank 7,329 24 9.17
4 Citi 6,748 19 8.44
5 JP Morgan 5,220 8 6.53

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
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1 Citi 117,261.12 337 11.09%
2 Bank of America Merrill Lynch 94,721.79 272 8.96%
3 JPMorgan 92,612.23 269 8.76%
4 Wells Fargo Securities 82,597.19 239 7.81%
5 Credit Suisse 69,442.99 183 6.57%