Conseco Bank Debt Runs Up On Chapter 11 News, AES Refinancing Leads To Surge

  • 18 Dec 2002
Email a colleague
Request a PDF
Conseco's bank debt popped up from the mid 60s into the 69-71 range after the company filed for bankruptcy late last night, but no trades could be confirmed by press time. Dealers said the filing was expected and that it was a good sign because it meant that reorganization could be completed allowing the company to emerge as a stronger entity. One trader, however, questioned whether the bank debt holders and bondholders would be able to come together on a deal. In a written statement, Conseco claims that it has received an agreement in principle from bank and bond holders to reduce the company's leverage. Repeated calls to company officials were not confirmed by press time.

AES Corp.'s revamped loan has popped up roughly ten points since its balance sheet overhaul was completed last week. Dealers said $5-$10 million pieces of all tranches changed hands. The company's new "A" loan was quoted in the 94 context. The "B" loan traded between the 91-92 range, and the company's "C" loan moved in the 92-92 1/2 range. Market players said the new security package, the large coupon of LIBOR plus 6 1/2% across all the tranches, and expected asset sales propped the paper. AES management has said it expects approximately $1 billion in asset sales over the next year, according to a company spokeswoman.

Del Monte Food's new deal has hit the street running. The paper was trading in the 100 5/8 to 100 7/8 context with $1-$5 million pieces changing hands. One dealer said he had completed 30 plus trades since the bank debt broke on Monday. The new deal comprises roughly 90 investors, and the "B" loan was oversubscribed. Consequently, Bank of America, J.P. Morgan, UBS Warburg, BMO Nesbitt Burns and Morgan Stanley flexed down pricing on the "B" piece to LIBOR plus 3 3/4% from LIBOR plus 4% (LMW. 12/16). Del Monte financial officials could not be reached by press time

United Rentals bank debt has been creeping up to the 99s since the company announced it was going to pursue a $210 million add-on to its 10 3/4% senior notes. The deal was completed on Dec. 16. Traders said the bank debt traded in the 99-99 1/2 context this week. The paper was priced in the 97 5/8 - 98 5/8 range prior to the announcement, according to LoanX. Roughly $100 million of the proceeds from the high-yield add-on will pay down a portion of the company's term loan, and the remaining amount is to be used for a repayment of the outstanding amount of the company's revolver. Calls to John Milne, cfo, were not returned by press time

  • 18 Dec 2002

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 1,505.59 4 23.86%
2 SG Corporate & Investment Banking 1,292.64 1 20.48%
2 Rabobank 1,292.64 1 20.48%
4 BNP Paribas 598.25 2 9.48%
5 TD Securities Inc 241.54 1 3.83%