Search results for

An estimated $70 million of Mariner Post Acute Network's bank debt traded between 46 and 47 last week, with dealers continuing to cite a strengthening health care industry as well as an improved distressed market overall. "It's up a couple points; people feel more bullish on the health care sector," said one. Another dealer noted that from a low point two years ago, there was only one direction for the industry to go in. "As with all health care stuff, it had bottomed out," he said. Calls to the Atlanta, Ga.-based company were not returned.

Institutional players are reportedly eating up last week's launch of Credit Suisse First Boston and Deutsche Bank's $775 million loan backing AEA Investors and DLJ Merchant Banking's leveraged buyout of B.F. Goodrich's chemical business, Performance Materials. One banker added that bankers expect the deal to be oversubscribed as a conservative structure has made the institutional tranches very appealing to the market.

• Moody's Investors Service downgraded Generac Portable Products' $115 million in secured credit facilities to B3 from B1 because of the company's weak performance last year due to reduced demand for generators. This is due to record demand in 1999, caused by severe weather activity in addition to consumer concerns about possible Y2K power outages and higher-than-normal generator inventory levels at retail locations in 2000. Because Generac was operating under tight credit measurements as a result of its 1998 recapitalization, there was little cushion to absorb lower results. Regarding 2001 projections, generator sales are expected to improve now that a good portion of 2000 excess inventory has been worked down.

Pricing and structure details emerged last week on Goldman Sachs' $205 million credit for Granite Broadcasting. The deal comprises a $110 million term loan "A" tranche and a $95 million "B" tranche. Both pieces are priced at LIBOR plus 51⁄2%, but there is a 12% floor on the deal, a banker said. The floor puts the deal above the 51⁄2% over LIBOR. Goldman expects it to close syndication by the end of the month but is still waiting for other players to come in on the deal.

Rite-Aid Corp.'s announcement last Tuesday that it would offer to exchange $321.6 million in bonds for stock sparked a trade of the Rite Aid.Com credit in the 80 range. Dealers reported a second trade on Wednesday between 86 and 87, with upwards of $50 million trading in the two days. One trader said the levels had softened after hitting a high of 86. "Doing the exchange with the convertibles takes a lot of liquidity pressure off the company," he said. The national drugstore chain is based in Camp Hill, Pa. It merged with Drugstore.Com to provide online pharmacy information and services. A spokeswoman declined to comment on trading levels.

Stanfield Capital Partners is reportedly in the market with a $600 million collateralized loan obligation with Credit Suisse First Boston. Sources in the market say the CLO is reportedly structured as a cash flow deal comprising a combination of bonds and bank loans, but the exact breakdown and structure could not be determined by press time. Stanfield officials declined to comment and officials at CSFB did not return calls by press time.

Bids for Finova Group's bank debt jumped up 10 points last week as word that General Electric Credit Corp. and Goldman Sachs were looking to take control of the company seeped into the market. LMW first reported the play for Finova on its Web site last Thursday, at which time a $10 million piece of the credit had reportedly traded in the range of 80. That trade could not be confirmed, but traders said bid levels on the paper were that high. Calls to Finova officials and a GECC spokeswoman were not returned. A spokeswoman at Goldman declined to comment.

Lower new issue volume in the primary market is helping propel stalwarts such as Nextel Communications and other telecommunications credits that not long ago were kept at arms' length because of overexposure. "It's going to start popping up with continued lack of good new issues," said one trader. "People need to keep cash at work, and [Nextel] is an oldie but goodie. There's sort of a risk/reward to diversifying your portfolio, but if you go too far you can blasted by a bad deal."

First Union and Merrill Lynch are set to launch syndication of a $800 million senior secured loan for Jacksonville, Fla-based grocery chain Winn-Dixie Stores, Inc. and act as co-leads on a $300 million bond offering for the company. Kelly Roth, treasurer, said the company signed commitments with the banks last week and will hold a bank meeting next week. She would not comment on expected pricing on the facility. Roth said pricing will be higher than it's been on the company's past credits as its debt rating is BBB- compared to a previous rating of A-. "We have a long history with First Union and Merrill and selected them based on the proposals that came in," she said.

Australia The Housing and Development Board (HDB) launched a S$500m seven year bond issue this week. Citicorp lead managed the domestic deal, which is the fifth transaction from the board's S$3bn medium term note programme. The transaction has a coupon of 3.523%.

AUSTRALIA Credit Suisse First Boston, Macquarie Bank and Merrill Lynch began the roadshow for the Austereo IPO yesterday (Thursday). The three banks are joint coordinators of the deal that will involve the spin-off of the Austereo assets from listed company Village Roadshow.