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 BNP Paribas 10,542 20 17.55
2 Bank of America Merrill Lynch (BAML) 6,103 21 10.16
3 Citi 5,130 13 8.54
4 JP Morgan 4,681 6 7.79
5 Morgan Stanley 4,137 11 6.89

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1 Citi 80,818.31 235 11.64%
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3 Wells Fargo Securities 56,145.09 163 8.08%
4 JPMorgan 53,381.65 156 7.69%
5 Credit Suisse 44,872.46 115 6.46%