Search results for

Several $5 million pieces of Iasis Healthcare traded in the 100 3/4 range last week in the wake of a $200 million initial public offering that will pay down bank debt. Names of buyers and sellers could not be determined, but dealers said the credit is attractive for its yield value. "People want to play a yield to call; it's going to get paid down at 101," a trader said. "People that want to play healthcare know that it's a name that's done fairly well."

Fleet Bank and Deutsche Banc Alex. Brown snagged a $300 million credit replacing Wachovia Corp. for JDN Realty Corp. The banks are looking for 10-12 lenders to round out the syndicate. PNC Bank, which also participated in the previous line, has already committed $25 million. Commerzbank will act as documentation agent, and is holding $50 million, one banker said. SouthTrust Bank, Key Bank and First Tennessee National Bank will be participating in this deal as well, he added. Charles Talbert, director of investor relations at the REIT, confirmed the REIT was in the process of renewing its credit line but declined to elaborate or comment on the lead banks. Wachovia did not bid on the deal, officials at the bank said, declining to elaborate.

Lower ad revenues pushed down levels for Emmis Communications' bank debt to 100 1/8, dealers said. The broadcasting industry has weakened as major televised events like the Olympics and the Presidential election are over. Since January the company's levels have shifted dropping slightly and nudging back up as market players anticipated earnings reports. Two weeks ago levels slid to 99 3/8 in anticipation of a weak earnings report then jumped back up to 100 3/8 when the company came out with numbers that met projections. Emmis, based in Indianapolis, Ind., owns and operates more than 20 radio stations in New York City, Los Angeles, and Chicago as well as two radio networks. A company spokeswoman did not return calls.

Bank debt for Corrections Corporation of America (CCA) last week traded in the 90s from the 70s range, dealers said, noting improved performance. "They executed their business plan pretty well," a dealer said. The company manages nearly 70,000 prison beds in more than 75 facilities. In 1997 Prison Realty Trust was spun off from CCA, which managed many of the REIT's prisons. High-profile prison escapes and a cooling REIT market hurt the company, which merged back into CCA.

A last-minute interpolation into the legislative history of the Gramm-Leach-Bliley Act by Rep.Jim Leach (R-Iowa) is creating another hassle between financial institutions and the Federal Reserve over what financial holding companies are allowed to do. In recent days, the Fed has been getting sharply worded complaints because the central bank wants to put an aggregate cap of only five percent of tier one capital on certain electronic activities it proposes allowing FHC's to do as "complementary" to financial.

Indianapolis-based, Duke-Weeks Realty Corporation increased its $450 million facility to $500 million upon refinancing the credit. Gene Zink, cfo, said "it would take a book not a newsletter," to describe why the company increased the credit, declining to elaborate on the reasoning behind it. The company signed the new $500 million credit on Feb. 28 for what Zink described as operating capital purposes. The old $450 million, three-year facility was maturing in March and will be replaced with a three-year revolver.

TheHouston Texans, a new National Football League franchise, signed a $150 million secured credit facility to go toward its league entrance fees totaling $700 million. Scott Schwinger, cfo, said the facility also funds general start-up costs for the team, which replaces theOilers in Houston. Each year the Texans will sign a new facility, paying league fees in installments.

Washington Group's bank debt fell from par to distressed almost overnight last week after the company announced it was at risk of violating covenants on a deal it signed in July. A pro rata piece traded around 60, and by late last week levels were quoted in the 52-56 range. One dealer reported $60 million had traded in that range on Thursday with Deutsche Bank reportedly handling the trades. Once a par name, Washington's precipitous plunge stunned some traders. "People assumed it was a par credit, the deal got done, and then it was like, crash," a dealer said. "Now people are quoting it in the 60s." A Washington Group spokeswoman declined to comment on bank debt levels.

Deutsche Bank has reportedly agreed in principle to pay up on a disputed credit default swap in which it provided protection to UBS on a company that designs and manufactures floors and ceilings. An official close to the situation said UBS will dismiss a lawsuit it brought against Deutsche Bank for failure to pay in the swap after what it thought was the reference company filed for chapter 11 bankruptcy protection last year. Terms of the settlement could not be determined by press time, the official said, noting that neither party has yet signed on the dotted line. Spokespersons at Deutsche Bank and UBS declined to comment.

UBS Warburg priced a 17.5m global depository receipt (GDR) offering for Sunplus Technology yesterday (Thursday) evening. The GDRs were priced at $9.57, a discount of 8.3% to yesterday's closing price of the ordinary shares in Taipei. The issue is the first depositary receipt issue from Taiwan for around six months and could encourage a spate of issuance. The deal raised $167.5m and will total $191.4m if the 2.5m GDR shoe is exercised. UBS Warburg launched the deal on Monday and had the book four times covered by the close of

Malaysian state owned power company Tenaga Nasional Berhad has stepped up its plans to buy back two outstanding bond issues worth $900m and offer a new 10 year international deal to replace them. Following a slight delay last week, Malaysia's largest company by market capitalisation filed a cash tender offer for two outstanding bond issues and a new global bond issue with the US Securities and Exchange Commission on Monday. A roadshow for the new bond issue begins next week.

ANZ Bank launched its second residential mortgage securitisation this week, with a A$500m deal that is set to price on Wednesday next week. The domestic issue will be followed later this year by ANZ's debut in the cross-border MBS market, with a global dollar issue mandated to Salomon Smith Barney.