Bear Stearns Sells Covenant-Light Magnaquench Deal

Bear Stearns is in the market with a $175 million “B” loan for magnet supplier Magnequench that has a bond covenant package.

  • 19 May 2004
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Bear Stearns is in the market with a $175 million “B” loan for magnet supplier Magnequench that has a bond covenant package. “It gives the company the flexibility you get with a bond deal, but the company generates a tremendous amount of free cash flow and there is a fair amount of stated amortization,” a source familiar with the deal said.

“It gives you the prepayability of a bank deal with the flexibility that you get with a bond financial covenant package.” The first-lien term loan hit the market last week at LIBOR plus 6%. Todd Boney, Magnequench’s cfo, did not return calls and Bear Stearns bankers declined comment.
  • 19 May 2004

GlobalCapital European securitization league table

Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 Bank of America Merrill Lynch (BAML) 1,284 2 30.09
2 Barclays 633 1 14.82
3 BNP Paribas 509 1 11.91
4 Citi 467 1 10.94
5 Morgan Stanley 455 1 10.66

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4 JPMorgan 7,314.30 26 9.25%
5 Wells Fargo Securities 6,258.35 24 7.92%