Search results for

Two deals for sports teams are getting ready to come off the bench, but they may be playing in front of a tough crowd. Bankers and analysts say a looming recession and an increasing reliance on corporate money may present challenges for teams looking to build stadiums or consolidate debt. Bankers specializing in sports finance said teams and sports groups may have to pay up to get deals done. A deal for the Detroit Tigers has been slogging through the market since July. It was repriced with a 3/8% increase and may have to go up another 1/8%, one banker noted.

Bank One has suspended all lending to leveraged buyout firms operating in the middle market pending further review, a well-placed LBO official told Corporate Financing Week, an LMW sister publication. Tom Kelly, spokesman at Bank One, had no comment. Bank One and other lenders have made clear the fact that they will be much more selective in the types of loans they will make, and there is growing concern among leveraged buyout firms about the middle market. General Electric's pending acquisition of Heller Financial, another major lender in the middle market, is adding to the anxiety. "There aren't that many lenders in the middle market like Heller, so we're losing one more player," said one LBO partner.

Barclays Capital has hired Eileen Murphy to develop a global collateralized debt obligation underwriting business. Murphy, the ex-global head of CDOs at Chase Securities, says she will be looking at hiring four to six people as soon as this week, and is considering a few names within Barclays. Within a year, she plans on doubling this number. She hopes to have underwritten Barclays first deal within two months, followed by at least one other transaction six months from now.

BNP Paribas' $300 million letter of credit deal for Aliso Viejo, Calif.-based Fluor has been oversubscribed despite the disruptions to the market since it launched on Sept. 7. A banker familiar with the credit said it is unlikely to be upsized before closing on Wednesday. Fluor is an engineering and construction company that designs, builds and staffs offices.

Bank of America is in the market with a $130 million credit for Denver-based MarkWest Hydrocarbon. David Wright, director of investor relations, said the loan will finance the acquisition of Leland Energy Canada and Watford Energy, both based in Calgary, Canada. Initially, to finance the acquisitions, MarkWest considered using convertibles, but then B of A offered to do the whole thing, Wright said. "This is great, as a big part is revolver," he said. The debt carries a rate of just over 2% over LIBOR, which Wright explained is less costly than the rate on a convertible deal. The credit is split into three tranches, a $55 million 26-month revolver and a $35 million four-year revolver, priced at LIBOR plus 2 1/4 % and a $40 million term loan "A" that carries a spread of LIBOR plus 2 1/2 %.

Charter Communications' bank debt traded down to 96 1/2 , which had softened about a point and a half, on the combination of a weakening broadcasting sector and news that the company's ceo is resigning. An estimated $5 million traded, but buyers and sellers could not be determined. In a Sept. 25 press release, the company announced that Jerry Kent would not extend his employment. The cable company is based in St. Louis, Mo.

Sell-side analysts say bonds of Samsonite Corporation (Caa1/CCC+) are an attractive pickup for investors, as they expect a fairly healthy economy and a return to something resembling normalcy in the travel industry within the next year. Arthur Roulac, consumer products sector analyst at Banc of America Securities, says that among the credits he covers, Samsonite has been hit the hardest in the wake of the attacks on the U.S. The luggage maker's 10.75% senior subordinated notes of '08 were bid in the mid- to high-60s last week, having been in the low- to mid-80s throughout August.

Australian Magnesium Corporation (AMC) is to proceed with its A$500m share issue, despite uncertainties in the global share markets and misleading press reports surrounding the possible issue. However, there is as yet no clear information on the timing for the new offer, the precise terms of the deal or of the roles the three local banks would take.

Japanese finance company Orient Corp (Orico) this week formally launched its largest ever securitisation with a deal backed by a portfolio of its auto loans that offered notes in both dollars and euros. Lead managed by Mizuho International, the deal was originally set for launch during the week of the US terrorist attacks. Mizuho postponed until this week.

ING Barings has financed a $500m securitisation for Samsung Card Co Ltd of South Korea through one of its asset backed commercial paper conduits. Backed by 'card loans' that Samsung Card extends to its retail customers, the deal is one of the largest securitisations conducted in non-Japan Asia.

Continuing boldly with its plans to access the subordinated debt market, Suncorp Metway launched a A$275m two tranche 10 year non-call five issue this week. The lower tier two transaction is the first vanilla deal to be priced in the domestic market since the US terrorist attacks curtailed secondary trading volumes.

Australia Standard & Poor's placed the A- rating of Coles Myers on CreditWatch negative. The agency said that its decision stemmed from CMS's exposure to discretionary consumer spending and the poor performance of its non-food businesses.