From Distressed Debt Investing Website: Over the next few months, in addition to regular postings, I would like to delve into some of the more archaic distressed debt investing concepts and technicalities. While a strong ability to value companies (especially those that are facing tough times) will get one far in this business, being able to […]
In the case of Dynegy, the lack of restrictive covenants led to the company changing its corporate structure to take assets away from the unsecured bondholders of DHI. DYN On November 7, 2011, Dynegy reached a restructuring support agreement (RSA) with a group of bondholders that combined hold $1.4B of DHI’s total $3.4B of […]
11/29/11 AMR filed for bankruptcy protection on 11/29/11 in a surprise move because the company still had $4B in cash. During the company’s third quarter earnings call in mid-October, then Chairman and CEO Gerald Arpey made it clear that bankruptcy was not their preference or goal. Over the Thanksgiving weekend, AMR’s board decided that chapter […]
This post was taken from Distressed Investing’s website. AMR: EETC Recovery 11/29/11 This morning, AMR Corporation (“AMR”), and its subsidiary American Airlines, Inc. filed for bankruptcy protection in the Southern District of New York. To say that this was a surprise to the market would be a bit of an understatement. To give you a […]
$300m (+45m) sen unsec cb coming tonight from JPM/CITI Terms: 10yr, 5yr put/call, full pctns. UOP=debt repurchase/gcp. 2 existing CBs; 2% (01/12/13), 2.75% (20/12/15). Latter = 2.6% +34% x/par +41% 5yr CDS = 425/450. We’ll use L+400 for 4 yr 2.75% = 26 iv. 01/14 25c indicated 46iv bid, 2 yr 50/10%ile = 42/29%. We’ll […]
$300m (+45m) 144a senior unsec cb tonight from JPM/NOM/BARC/C. Terms: 7yr bullet, 2.875%-3.375% up 33.5-38.5, prot. UOP = acq of commercial aircraft & gcp. Aircraft leasing company, launched in 2010 and IPO’d April 2011. 7.5 levered w/,ore debt to fund acq committments expected (239 planes for $11.7B). $1.3B of debt is secured (~62%) w/balance incl […]
$200m (+30m) sen unsec cb coming 2nite from JPM/BARC. Terms: 5yr bullet, 1.25-1.75% up 30-35%, pctns. UOP=gcp. Existing cb came 4.375% up 25 in 2009. We saw co in May; +ves=revised 5/12 revolver to 2016, profitable fcf+ even in yr w/o GTA release. Emerging mkt partnerships will come 2 fruition in 2013; exp proftiable thru […]
$400m (60m) sen unssec cb coming this morning from Citi. Terms: 7yr bullet, 3% up 30%, full pctns. UOP = 2.25% 12 reupurchase/hedge/gcp. Will keep this short. Pls dont rely upon model, rely upon the track record of 7yr structures on credit names; MU A, ILMN, CX, BKD. Actually, look at 5yr credit names of late; […]
$600m (+90m) sen unsec cb coming tonight from MS. Terms: 20 yr, 2.5%-3% up 35-40%, call 6y, puts 6,10,15y. Full pctns. UOP=stk buy back/gcp. Good equity story/decent credit. Existing 2.75% cb (BB-) is big o/r name. Came in ’06 +22.5%, now trading 133 w/15% premium so o/r effect clear 2 see on way up. NUAN […]
$400m ($60m) 144a senior convert pricing overnight from GS. Terms: 5yr bullet, 1.375-1.875% up 30%, prot. UOP=warrant trans & gcp. $5.8B mkt cap w/one drug on mkt ($5m/qtr rev). Another awaiting approval in Nov which will have Roche competition. PF Cash = $915m, debt=$560m. Neg EBITDA & cash burn expected to continue thru 2012. We’ll […]