This post was taken from Distressed Debt Investing. The Anatomy of a Double-Dip Mark P. Kronfeld (1) American Bankruptcy Institute Bankruptcy lawyers and distressed investors often loosely use the term “double-dip” to describe scenarios where a creditor can increase its recovery by multiplying its allowed claim against a particular entity or asserting claims against multiple […]
Distressed Debt Investing Website: The Postpetition Interest Debate: What Distressed Debt Investors Need to Know Bankruptcy Courts have long taken divergent approaches to the appropriate calculation of postpetition interest on general unsecured claims in solvent debtor cases. While some courts have applied the federal judgment rate of interest pursuant to 28 U.S.C. § 1961(a), […]
3/13/12 Salix Pharmaceuticals $500m ($75m) snr unsecured CB coming o/night from Bofa. Terms, 7 yr bullet, 1.5-1.75 up 35%, full pctns, happy meal. UOP include buying back 5.5%/2028 CBs and $50m of stock. Existing 2.75% of 2015 is a $345m deal, back out L+213 (35 vol). Hear 45/350 being suggested for modeling, those that follow […]
Ares Capital (ARCC) $150m (+22.5m) sen unsec cb coming tonight from WFC, MER, JPM, MS. Terms: 5yr, 4.375-4.875% up 17.5-20%, full pctns (div > 0.37). UOP = gcp, debt repayment. $575 deal came 5.75 up 17.5% (01/11), $230m cb came 5.75 up 17.5% (01/11) $230m cb came 5.125 up 17.5% (03/11), both priced off $16.28 […]
Price line (PCLN) $875m (+125m sen unsec cb coming tonight from GS. Terms: 6yr, 1% up 50%, reoffered 98.5-99.5, full pctns. UOP=$200 stk buy back/gcp. Happy Meal for those who want. Put this into perspective; stk up 35% ytd, up 270% from 03/2010 1.25% issue and this will be struck up another 50%. The model […]
Daiwa new issue SGY Stone Energy $250m (+25m) 144a cb pricing tonight from BARC/MER. Terms: 5 yr bullet, 1.5-1.75% up 30-35%, prot UOP= warrant trans & gcp. Stone Energy is a small oil & gas e&p focused on Gulf Coast Basin. $1.5B mkt cap. Low lev of 1.5x and good liquidity; though cash burn to […]
2/28/12 Daiwa Color: Dealer Trak (TRAK) $150m (+22.5m) 144a senior cb pricing tonight from BARC/WFC/JPM. Terms: 5yr bullet, 1.5-2% up 30-35%, prots. DealerTrack provides software to the retail automotive industry. Numbers have been improving with improving auto sales and availability of credit. This cb will be only debt (full $125m secured rev available at L+225). […]
Distressed Investing Website: Contesting Priming Liens in DIP Financing Within any chapter 11 business bankruptcy, a secured creditor runs the risk of having its interest primed in favor of a lender who provides the debtor additional operating capital during the pendency of the bankruptcy proceedings through debtor-in-possession (“DIP”) financing under § 364 of the Bankruptcy […]
Distressed Debt Investing Capital structure arbitrage is a strategy used by many directional, quantitative, and market neutral credit hedge funds. In essence, it is going long one security in a company’s capital structure while at the same time going short another security in that same company’s capital structure. For instance, “long sub bonds, short senior […]
Distressed Debt Investing 11/1/10 Over the past week, many high yield and credit strategist put out a number of pieces on the recent rise of LBOs. What has driven this renewed interest in the LBO space? Lower cost of debt capital in the form of all time low yields across the B and BB space. […]