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  • The Loan Syndications and Trading Association and 16 agent banks have agreed on guidelines that lay out a timeframe for banks to apply for CUSIPs.
  • The $1.47 billion Sally Beauty credit partially funding a dividend of approximately $2.4 billion hit the market last Wednesday.
  • In the midst of a housing downturn, Bank of America and Morgan Stanley launched syndication last Wednesday of a $1.425 billion credit facility for Crescent Resources, a residential and commercial property development company.
  • Cell C's 11% '15 subordinated bonds rose 10 points to the high 90s after its majority owner, Oger Telecom, announced an initial public offering, according to a dealer.
  • Morgan Stanley has hired Timothy Armstrong from Merrill Lynch as a v.p. in collateralized debt obligation distribution to Europe and the Middle East. He is based in London and brings the distribution team there to four people.
  • Trading volume was light on the break of West Corp.'s $2.1 billion term loan into the secondary market Monday.The first, second and third liens of Reynolds and Reynolds' $2.485 billion financing broke last Tuesday in the secondary market. Ford Motor Co.'s five-year credit default swaps tightened 40 basis points to 620-625 after the auto maker posted a $5.8 billion third quarter net loss, a loss that fell within market estimates.
  • Telefónica's issue in January was the only fixed rate public corporate bond in the European market by a Spanish issuer in 2006 to date. Companies can get very good rates in the loan market and bonds have been ignored. With mergers and acquisitions in full spate, there will be fewer companies to raise bonds next year. But, as second tier Spanish firms access the debt market, corporate bond issues in Spain may even increase.
  • Heavy infrastructure investment has made Spain one of Europe's leading centres of project financing. Renewable energy has taken over from roads as the most important sector, and biofuel plants are expected to join the mix of wind and solar projects in the coming year. Public-private partnerships for projects such as hospitals are also thriving. So far, there seems little room for securitisation to challenge a cash-rich and eager bank loan market.
  • Financial institutions are the engine of Spanish fixed income, and as the industry changes, the bond market is altering too. Savings banks' market share in Spanish banking has been steadily growing, and they are more and more evident in the debt capital markets, particularly as they cannot issue shares. But commercial banks, too, have been launching bigger and more ambitious transactions at both senior and subordinated levels — and even showing more consideration to investors' views on pricing.
  • Leveraged finance in Spain is booming. As elsewhere in Europe, the market is going through a bull run, with the record-breaking Amadeus deal last year and continual pressure from private equity funds for higher leverage multiples.
  • Syndicated lending to Spanish companies has not been as big this as year as last, but 2005 was a bumper year and the underlying trend in the market is still very strong. Big takeover battles like those for Endesa and BAA have dominated the action, but just as important have been the busy M&A in Spain's real estate market and borrowing by mid-cap companies.
  • Spain's mortgage market is the fastest growing in Europe, fuelling a steady increase in securitisation. In July, Standard & Poor's expected securitisation to level off, but once again Spanish markets have beaten forecasts, as RMBS has been swelled by banks trying to relieve pressure in the cédulas market.