Search results for

Special servicers for the commercial mortgage-backed securities industry are preparing for an increase in delinquencies, the first time the mart will have had to handle the phenomenon, according to Real Estate Finance & Investment, a BW sister publication. Investors have expressed concern about special servicers' readiness to handle the increase, but preparations have included the addition of seasoned workout staff, upgrades in technology and a practice of monitoring the performance of a loan during its life. "The market is seeing an increase in delinquencies," reflects Stephanie Petosa, a senior director at Fitch. "Servicers are describing their operations as prepared for an increase and we are attempting to verify that through reviews."

Comdisco's bank debt slipped to the low 60s in a $10 million trade last week as uncertainty surrounded the credit. Bank of Tokyo-Mitsubishi was rumored to be the seller, though it could not be confirmed. Officials at the bank did not return calls by press time. A company spokeswoman declined to comment on trading levels. "We're reassessing our business, so we're really not in a position to comment at this time," she said.

Credit Suisse First Boston last week launched syndication of a $200 million, six-year term loan "C" for Cincinnati-based optical network communications company BroadWing Inc., formerly Cincinnati Bell. As first reported on LMW's Web site, Bank of America is syndication agent and Citibank is the administration agent on the deal, which refinances a $1.8 billion credit originated in November 1999 and amended to $2.1 billion in January 2000. A banker familiar with the situation said the money would pay down a portion of the $900 million revolving credit portion of that deal, in order to enhance liquidity. Pricing is LIBOR plus 21/2 % on the Ba1 rated credit. Citibank led the original loan.

Stephen Ledoux and Neil Augustine, the co-lead portfolio distressed debt portfolio managers at Morgens, Waterfall, Vintiadis & Co., where they oversaw $500 million in mostly distressed loans and some distressed bonds, have left the firm to join Rothschild Inc. The two will advise creditors and debtors during bankruptcy processes. As a result, MWV has shut down its distressed debt product and has returned assets to clients, which included foundations and endowments, pension plans, and high-net-worth individuals, according to Susan Waterfall, marketing director at MWV. She says some of the firm's clients have opted to reinvest in the firm's long-short equity fund, adding that some $50-100 million already has been switched over.

Dresser Inc.'s term loans "A" and "B" each topped off over par last week on increased investor appetite for the credit. The "A" tranche hit 101 3/4 and the "B" hit 101 1/2 as more than $100 million of the credit has traded. According to a dealer, the credit "hits the right sweet spots" in the market. "It's in the energy sector. It's rated Ba3 with a positive outlook," he said. Dresser is an oil and gas-equipment services company.

RCN Corporation's bank debt notched up to the high 70s from the mid-70s last week after an equity infusion from Red Basin Capital. Late last week RCN got $50 million in common stock from Red Basin. RCN also announced it has commenced a "Modified Dutch Auction" tender offer for certain of its debt securities. The Princeton, NJ-based company builds broadband fiber optic networks. A company spokeswoman did not return calls.

Finova Group's debt popped to 85 1/2 from the low 80s last week and about $100 million changed hands in a series of trades as competing bidders for the company tried to best one another. A revised proposal from Goldman Sachs' and GE Capital sparked trades early last week, with ABN-Amro rumored to be among the biggest sellers of the name. A bank spokeswoman did not return calls. Levels were nudged up half a point on Friday to 86 when Berkadia weighed in with a new proposal of its own.

Bank of Nova Scotia has committed $50 million of an $80 million credit for Lido Casino to finance the construction of a new convention center. The bank is tapping existing lenders to the company for the remainder of the loan, split between a $30 million revolving credit and $50 million "A" term loan.

It took a little house work, but Tapco Carpentry's bank debt is slowly but surely moving up and is now bid at 97 1/2. The paper was offered at 96 1/2 a few weeks ago and has slowly inched up in a series of trades. Tapco, based in Plymouth, Mich., constructs shutters for houses. A company spokesman could not be reached by press time. Tapco has a $217 million credit facility that expires in 2008. Well Fargo Bank and Morgan Stanley lead the deal, according to Capital DATA Loanware.

Triad Hospitals downsized its $1.4 billion acquisition credit to $1.2 billion after choosing to upsize its bond piece, as market conditions proved more favorable in the bond market than in the pro rata market. Burke Whitman, cfo, explained that the company decided to move a piece of the "A" tranche into the "B" and increase the bond offering to respond to very strong institutional and high-yield demand. "The 'B' piece and bond piece were so significantly oversubscribed that we had the nice problem to have, which is the challenge of allocating among loyal, repeat investors," he explained.

Moody's Investors Service upgraded Enterprise Products Operating L.P.'s senior unsecured debt ratings to Baa2 from Baa3, reflecting the increased scale of operations and strong market position in the Gulf Coast region. Enterprise's operating capabilities and growth opportunities have been significantly enhanced by the recent acquisitions of Acadian Gas and interests in four Gulf of Mexico natural gas pipelines.

Morgens, Waterfall, Vintiadis & Co. is winding down its approximately $600 million distressed debt fund following the departure of the portfolio's lead managers. According to LMW sister publication, Foundation & Endowment Money Management,Stephen Ledoux and Neil Augustine have left Morgens, Waterfall to join investment bank Rothschild Inc., where they will advise creditors and debtors during bankruptcy processes.