Hints and tips:
...While it was unclear what rate Vista had secured on its NAV loan, it is below a 17 per cent second-lien loan some lenders had pitched to Finastra earlier this year....
...It also creates the risk of throwing good money after bad, a cardinal sin. One fascinating nugget DD picked up: this new leverage is somewhat hidden....
...People committed the cardinal sin of chasing returns.”...
...The bonds are now trading above par, and the yield spread to worst on the first lien notes is below 250 bps....
...The key remaining adversaries: David Tepper’s Appaloosa and Howard Marks’ Oaktree, formidable hedge funds that had accumulated stakes in Caesars’ junior “second-lien bonds” and had clashed before with Apollo...
...Since its emergence from Chapter 11 nine years ago, Calpine has been gradually replacing debt that has onerous liens and terms with more loosely written unsecured paper....
...stock to boost the second lien payout....
...Gone, once again, are Holdco PIK loans, aggressive second lien structures above 7 times earnings before interest, taxes, depreciation and amortisation (ebitda), and total debt levels in which the debt multiple...
...The restructuring plan has the support of more than 80 per cent of first-lien noteholders, among the most senior creditors, Caesars said....
...That means the process is likely to be “an unbelievable donnybrook” or fracas, as one holder of both first and second lien debt says....
...In September, the parent company exchanged $543m of second lien debt that was due to mature in 2015 for $503m of first lien bonds that will mature in 2019....
...(and) are of even more concern considering that the controlling shareholder controls both the board of directors and $850m of first lien debt”....
...This year and next only €30bn falls due in the senior and second lien debt markets. But between 2014 and 2016, a total of €136bn will need to be repaid or refinanced, according to Credit Suisse....
...After struggling to syndicate a €500m loan for the buy-out of German retailer Jack Wolfskin by Blackstone, banks have inserted a €70m second lien loan tranche into the debt package with an interest rate...
...But there is one “cardinal sin” that investors say will be tougher to recover from than some other slip-ups: putting too many rotten eggs in one basket....
...The head of WL Ross, a New York-based private equity company, has linked up with Carlyle and a local Irish private equity vehicle called Cardinal Capital to bid for EBS....
...That plan has support from 80 per cent of the second lien and mezzanine debt lenders....
...The writer is senior managing principal and founder of Sovereign Trends, LLC...
...But investors say he committed the “cardinal sin” of overexposing himself to the EMI deal, which accounts for about 30 per cent of his last two funds....
...Aside from Mr Bayliss, the other contenders are Gail Cartmail, assistant general secretary for public services, and Jerry Hicks, a grassroots leftwinger backed by filmmaker Ken Loach....
...Houghton Mifflin Harcourt, the educational materials and services company, has averted possible bankruptcy proceedings by securing lenders’ unanimous support for a restructuring which will wipe out equity...
...The new holdco housed Chrysler Corp LLC – producer of Chrysler, Dodge and Jeep branded vehicles – and Chrysler Financial....
...“During the current financial crisis, many hedge fund managers forgot the cardinal rule of hedge fund investing, which is to protect investor capital during down markets,” Mr Soros said....
International Edition