HY Issues Boost Calpine, Reliant

  • 29 Jun 2003
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New issuance in the high-yield market continues to push up names in the secondary loan market, with Calpine Corp. and Reliant Resources the latest to join the party. Calpine's "B" loan traded into the 995/8 range Thursday morning after the company announced it was pursuing a private placement of $1.8 billion of second-lien senior secured notes and term loans. Goldman Sachs is the lead arranger on the deal, according to market players. Proceeds from the transaction have been pegged to repay $950 million of Calpine's "B" piece and $450 million of the company's revolver. Given how the loan is trading, the market seems to think Calpine will be able to get the deal done, said one trader. Spokeswomen for Calpine and Goldman declined to comment.

Reliant was also able to price $1.1 billion of new senior notes, which are also slated to pay down the company's bank debt. The credit includes a $2.1 billion revolver, a $921 million term loan and a $2.91 billion term loan. The loan traded into the 93-94 context. The company had originally been looking to complete $350 million in senior notes and $200 million of convertible senior subordinated notes. The company increased the senior notes to include a $550 million, seven-year 91/4% notes and $550 million, 10-year 91/2% notes. Whether the senior notes are being pursued in addition to or in lieu of the convertible offering could not be determined. Questions for Mark Jacobs, Reliant's cfo, were referred to a spokeswoman, who did not return calls.

  • 29 Jun 2003

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) 7,026 25 11.95
2 Citi 6,449 21 10.96
3 BNP Paribas 5,093 18 8.66
4 Barclays 4,040 11 6.87
5 Lloyds Bank 3,615 14 6.15

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 23,299.13 64 12.42%
2 Bank of America Merrill Lynch 21,899.30 57 11.68%
3 Wells Fargo Securities 16,244.58 49 8.66%
4 JPMorgan 13,323.94 44 7.10%
5 Credit Suisse 10,691.12 19 5.70%