Search results for

CIBC World Markets and General Electric Capital Corp. were close to filling Therma-Tru's $255 million "B" loan as LMW went to press. The $330 million deal launched to retail last Tuesday and had $205 million in tickets on the institutional piece split between 21 investors by Thursday, said a banker familiar with the credit, expecting that it was en route to a Friday fill. Pricing on the "B" is LIBOR plus 31/ 4% with a 1/8% upfront fee. The $75 million revolver priced at LIBOR plus 23/ 4% with a 50 basis point commitment fee on tickets of $10 million and a 75 basis point commitment fee on bids for $15 million. A CIBC official declined to comment, while a GE Capital banker did not return calls by press time.

The five banks leading TRW Automotive's $900 million "B" loan had rounded up more than $300 million in commitments as LMW went to press last week. A banker familiar with the deal said that some investors were waiting on the concurrent $1.4 billion bond issuance, which commenced its road show last Tuesday, before bidding into the tranche. "People know the capital structure," he explained, expecting the "B" to fill without a hitch. He added that it is one of the main companies in the auto parts sector in which investors are interested. "You need size and scale to compete," he said, speaking to TRW's market hold. Credit Suisse First Boston, J.P. Morgan, Lehman Brothers, Deutsche Bank and Bank of America are leading the deal.

Michelle Tan has joined Wachovia Securities as a v.p. and collateralized debt obligation structurer. She most recently worked at Credit Suisse First Boston, where she was a v.p. prior to being laid off (BW, 12/1). Tan, who is based in New York, says she reports to Yu-Ming Wang, managing director and the newly appointed head of the CDO business at the bank. Tan specializes in repackaging, or CDOs backed by structured finance bonds. The position is a newly created one. At CSFB, she reported to Chris Ricciardi, managing director.

Wamu Capital Corp., the Seattle based mortgage- and asset-backed securities broker/dealer subsidiary of lending giant Washington Mutual, has opened a New York sales desk and has made its first three hires, according to firm President Tim Maimone. Maddee Kassimir, Tom Berger and Shari Korn have joined the firm from M.J. Whitman and will begin selling MBS and ABS "as soon as we can square away our office situation," says Maimone, noting that they will work out of temporary quarters for the time being. They will report to Seattle based sales chief Todd Kaufman.

WorldCom's bank debt levels sunk even further last week, although no trades could be confirmed. Bank debt players said bids for the name sunk as low as the 19 level before rebounding into the 21 range. The reason for the drop, traders said, was purely a case of buyers lowering their price because of a number of sellers in the market. "Once there is the perception of [sellers], bids will back off," noted one banker. Market players buzzed once again last week about a phantom $200 million seller. Whether the seller existed or a trade was ever completed could not be determined. Other market players re-emphasized that bids for WorldCom fell in sympathy with a weaker outlook for AT&T.

Xerox's bank debt bobbed last week, dipping a couple of points last Monday before coming back up by midweek. The paper dropped on concerns of weak results from the company as well as a softer market in general. As a result, the revolver reportedly traded in the high 80s. After Xerox released its numbers, however the paper recovered. By Wednesday, the revolver was quoted in the 90-91 context, according to LoanX.

Penn Capital Management recently unloaded its stake in healthcare distributor Amerisource Bergen Corporation's 7.25% notes of '12 (Ba3/BB-). Eric Green, portfolio manager and director of research at the Cherry Hill, N. J., shop, says that while he sees nothing fundamentally wrong with the credit, he was able to find better value in the new-issue market. "We'll let somebody else take the last couple of points," Green says.

TCW is seeking investors for what is the first collateralized loan obligation that predominantly invests in pro rata bank debt--the revolver/term loan mix that has been shunned by banks and has typically held limited appeal for funds and CLOs. One banker described the potential CLO, being structured by Citibank, as a groundbreaker and a CDO structurer and a portfolio manager concurred the structure has never been attempted before. A banker familiar with the structure said TCW is in a roadshow to raise equity for the $500 million fund that will then invest in revolvers and "A" loans, possibly this quarter. The name of the vehicle could not be determined, but a portfolio manager said it will target large syndicated loans, and there are plenty of assets available.

While high-yield was flat overall through last Wednesday, it showed surprising resilience given the geopolitical uncertainty and healthy supply of new issues, says Jon Budish, senior trader at Jefferies & Co.New issue activity slowed, which many buy-siders attributed to a J. P. Morgan Securities high-yield conference in New Orleans. Pegasus Communicationswas downgraded two notches by Standard & Poor's. Here is selected action.

Many investors are opting for a layover on the UAL Corp. $1.2 billion debtor-in-possession deal led by J.P. Morgan, Citibank, Bank One and CIT Group. Despite eye catching pricing, some market players are still avoiding the long-time negative cash flow airline. An investor who opted not to participate in the deal quoted pricing levels climbing and possibly surpassing the LIBOR plus 6% range with a 3% LIBOR floor, as well as an original issue discount up to 5%. The deal launched last December with a LIBOR plus 41/ 2% coupon and a 2% LIBOR floor. Commitment levels could not be confirmed by press time, but one investor said credit issues were the main things keeping investors away. Without the DIP, the company will not survive, according to a company report.

Banca Popolare di Vicenza is expected to price its first, and what will be its only, mortgage-backed deal of the year this week. The E409.65 million deal will be backed by residential and commercial mortgages. Pietro Cirenei, Banca Popolare di Vicenza's cfo, says, "We are a retail bank with a very consolidated market share in Northern Italy. We originate about E500 million in mortgages per year and fund that business through securitization, which gives us pricing advantages." Cirenei says the firm has no plans to securitize other assets. Schroder Salomon Smith Barney is arranging the deal.

Kmart's bank debt climbed up after the company released its plan of reorganization providing pre-petition lenders holding $1.08 billion in claims with roughly 40 cents on the dollar for their commitments. The bank debt was said to have traded in the 36 context, before ticking up to the 37-39 range, with a few pieces changing hands.