Search results for

Oren Cohen left Merrill Lynch last Wednesday, where he was a managing director and media analyst, to join Trilogy Capital, a New York hedge fund. "I feel I've done everything I set out to do on the sell-side. This is an opportunity to do something else," he says.

Merrill Lynch has hired Drew Nugent as a v.p. in its global asset finance group. Nugent will report to Michael Blum, the managing director who heads the origination team in New York. Nugent says he will be a transactor on non-real estate ABS deals, focusing on a broad range of asset classes. An ABS banker says Nugent is filling in a slot left vacant with the recent departure of Richard Burke for HSBC Securities (BW, 6/10). With the addition of Nugent, Merrill's global asset finance group in New York is comprised of seven staffers, including Blum, four bankers, one analyst and one risk manager. At Lehman, Nugent worked in the origination team, reporting to Diane Rinnovatore, managing director. He declined to discuss his former duties. Prior to working with Lehman, Nugent was an analyst with Fitch Ratings, specializing in aircraft securitizations. Rinnovatore did not return calls.

Merrill Lynch is reportedly trying to lure back Chris Birosak, just a week after letting go Jack Yang, co-head of leveraged finance. As first reported on LMW's Web site last week, Birosak would not be coming in as a replacement for Yang. Instead, he would join in an effort to bolster a team that has been whittled down over the past six months. The revolving door at Merrill has some wondering about the firm's commitment to the syndicated finance market. "The firm is going through turmoil," said a banker. "Re-hiring Birosak is an attempt to say Merrill is still committed to syndicated finance, but re-hiring one of five they got rid of seems symbolic." Merrill laid off 16 people -- including Birosak, Chris Johnson, Michael Senft -- from its U.S. leveraged group last November. Matthew Collins, global co-head of leveraged finance, resigned in February. A Merrill spokeswoman did not comment on any effort to bring Birosak back, but said, "Merrill is definitely not de-emphasizing the syndicated finance group."

ABN Amro Asset Management is looking at developing a sterling-denominated pooled corporate bond fund for its U.K. pension clients. Alan Higgins, London-based head of global fixed income, says the firm has not finalized plans for the new product, but is considering it in response to client demand. The new fund will likely invest exclusively in investment-grade bonds. ABN Amro Asset Management manages roughly $8 billion in fixed-income assets from its London office.

More than $40-50 million of Adelphia Communications' Century Cable facility changed hands in the 78-81 range after its operating company, Century Communications, filed for bankruptcy last week. The name had traded as low as 83 1/2 two weeks ago. "People are trying to find out where the right levels are now that it has moved into distressed," said one dealer concerning the trades. Market players also are trying to anticipate which of the company's operating subsidiaries is the next to file and when that will be. "That's the million dollar question," said one trader. Calls to Adelphia's spokeswoman were not returned by press time.

High-yield portfolio managers and a sell-side analyst say the high-yield auto parts sector has only a small number of credits worth betting on, in spite of two recent successful deals. Given issuers' propensity to grow largely through acquisitions, the potential for off-balance sheet financing is considerable, says a New York-based portfolio manager. Eric Green, high-yield portfolio manager at Penn Capital Management in Cherry Hills, N.J., says that while it is necessary to be particularly careful in this sector, he says there are still opportunities to pick up yield. He cites vehicle transport company Allied Holdings' 8.625% notes of '07 (Caa1/CCC+), which were trading at 82 last Monday, as one example of an issue he expects to appreciate further. Green would not say at what price he would sell the issue.

J.P. Morgan, Salomon Smith Barney and Morgan Stanley are leading the charge on a repricing for Resolution Perfomance Products that would shave 100 basis points off the LIBOR plus 33/ 4% the company is paying on its "B" term loan. A banker said the company is in aggressive de-leverage mode, and only about $225 million is left from the original $350 million "B" loan. The three banks held a meeting last week via conference call.

Two new collateralized debt obligations feature triple-A tranche pricing is tighter than the recent market has seen, and that pricing is expected to shrink further as investors increasingly opt to invest in CLOs over other structured vehicles. The triple-A notes for Atrium CDO 1, managed by Credit Suisse Asset Management, and Aurum CLO 1, managed by Stein Roe Farnham, priced at LIBOR plus 43 basis points last week, according to J.P. Morgan analyst Christopher Flanagan. He explained the pricing is due to healthy demand for CLOs accompanied by tight spreads in the underlying collateral markets. The spread over LIBOR is only two basis points lower than what the market had been seeing, but it is significant, buysiders said. "It definitely makes a difference, especially if you are paying a quarterly dividend," one CLO manager said.

J.P. Morgan and Bank of America are in the market with a $1.25 billion redux for Community Health Systems, a Forstmann Little & Co. investment, and are looking for a major price cut on the institutional tranches. The current "A," "B" and "C" tranches are priced at LIBOR plus 3%, 31/ 2% and 33/ 4%, respectively. But the banks want to roll those lines into one $800 million "B" tranche priced at LIBOR plus 21/ 2%. A $450 million revolver also is being refinanced, said a banker.

Corrections Corporation of America has secured a new $715 million credit facility with the goal of improving its credit rating and paying down its debt. The new loan is structured so the company can continue to pay down debt, try to draw its rating higher and become a better borrower later on, noted Irving Lingo, executive v.p. and cfo. "We have successfully been able to get our credit ratings increased," he said, noting an improved B1 rating from Moody's Investors Service and a B+ rating fromStandard & Poor's.

Tyco International's February 2003 bank debt was traded in the high 80s early last week before sinking along with the company's 4.95% notes maturing in August 2003. The name rose back to the high 80s again on Thursday after news that the Securities and Exchange Commission reportedly has cleared Tyco to spin off the CIT Group by issuing 200 million shares for between $25 and $29 a share. This move is looked at positively by investors, who noted the company's near-term liquidity issues.

Fitch Ratings has downgraded Tyco International's senior unsecured debt to BB from BBB citing the concerns about the company's ability to execute its strategic plan, liquidity and near-term debt maturities and shortcomings in corporate governance.