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Leveraged loan returns: Loans gain 0.02% today; YTD return is 2.72%

Loans gained 0.02% today after gaining 0.02% yesterday, according to the LCD Daily Loan Index.

The S&P/LSTA US Leveraged Loan 100, which tracks the 100 largest loans in the broader Index, gained 0.02% today.

In the year to date, loans overall have gained 2.72%.

A full xls of the Daily Index is available to LCD  subscribers, please click here.

LCD Daily Loan Index – April 30, 2013

TOTAL RETURNS

All

Perf. Loans

L100

BB

B

CCC

For 4/30/13      0.02%      0.02%       0.02%

 0.01%

 0.02%

     -0.02%

For 4/29/13      0.02%      0.03%      0.02%

 0.02%

 0.02%

     0.11%

           
Month-To-Date 4/30/13

 0.60%

     0.60%

  0.56%

0.34%

0.49%

    2.65%

12/31/12 – 4/30/13

2.72%

     2.84%

 2.73%

1.74%

2.92%

  7.99%

12/31/11 – 4/30/12

4.53%

     4.59%

 5.08%

3.43%

5.91%

   2.04%

Source: S&P/LSTA Leveraged Loan Index.

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Investco sells Armacell to Charterhouse for more than €500M

Investcorp has agreed to sell Armacell to Charterhouse for more than €500 million, the private equity company confirmed in a statement this morning.

The agreement revives a deal that had looked in jeopardy just a few weeks ago, when sources suggested sponsor Investcorp was looking at a recapitalisation of the firm. The sponsor put Armacell on the block earlier this year and received bids by early March from a mix of private equity and trade buyers, including HgCapital and Pamplona as well as Charterhouse.

The focus will now turn to the debt mandate, which was competitively bid during the auction. Armacell is seen as a steady performer, having delevered from roughly 5.7x at the time of its 2007 buyout to around 3x at the time of the auction.

Investcorp bought Armacell from Gilde and CVC for €400 million, in a deal supported by a €382.5 million senior, second-lien, and mezzanine debt financing. BNP Paribas and CIBC arranged the facilities, which closed oversubscribed allowing for a pricing and structural flex.

Armacell operates 19 manufacturing facilities in 13 countries, and serves 30 countries around the world. Barclays advised Investcorp. – David Cox

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Leveraged loan returns: Loans gain 0.02% today; YTD return is 2.70%

Loans gained 0.02% today after gaining 0.03% on Friday, according to the LCD Daily Loan Index.

The S&P/LSTA US Leveraged Loan 100, which tracks the 100 largest loans in the broader Index, gained 0.02% today.

In the year to date, loans overall have gained 2.70%.

A full xls of the Daily Index is available to LCD subscribers, please click here.

LCD Daily Loan Index – April 29, 2013

TOTAL RETURNS

All

Perf. Loans

L100

BB

B

CCC

For 4/29/13      0.02%      0.03%       0.02%

 0.02%

 0.02%

     0.11%

For 4/26/13      0.03%      0.03%      0.03%

 0.02%

 0.02%

     0.21%

           
Month-To-Date 4/29/13

 0.58%

     0.59%

  0.54%

0.33%

0.47%

    2.67%

12/31/12 – 4/29/13

2.70%

     2.82%

 2.71%

1.73%

2.90%

  8.01%

12/31/11 – 4/29/12

4.44%

     4.50%

 4.93%

3.39%

5.88%

   1.37%

Source: S&P/LSTA Leveraged Loan Index.

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JC Penney joins institutional calendar with $1.75B leveraged loan

J.C. Penney’s new loan deal will be a syndicated transaction that’s likely to come to market in as little as two weeks, although timing hasn’t been nailed down yet, sources said. The transaction will be all new money for institutional loan investors.

The retailer disclosed today that it has obtained a commitment letter from Goldman Sachs, providing a $1.75 billion, five-year senior secured term loan that is secured by real estate and other company assets. Proceeds are available for working capital and general corporate purposes, which could include “acquire or satisfy and discharge” the company’s outstanding 7.125% notes due 2023, according to the company statement.

On April, 15, J.C. Penney announced that it drew down $850 million from a $1.85 billion asset-based revolver due 2016 to fund working capital requirements and capital expenditures, including the replenishment of inventory levels ahead of next month’s anticipated completion of the renovated home departments. The revolver was arranged by J.P. Morgan, Bank of America Merrill Lynch, Barclays, and Wells Fargo. Pricing on the revolver is tied to a ratings-based grid, ranging from L+150-300, with a commitment fee ranging from 25-50 bps. Based on J.C. Penney’s CCC+/Caa1 ratings, all in pricing appears to open at L+350. – Staff reports

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Leveraged loan returns: Loans gain 0.03% today; YTD return is 2.65%

Loans gained 0.03% today after gaining 0.02% yesterday, according to the LCD Daily Loan Index.

The S&P/LSTA US Leveraged Loan 100, which tracks the 100 largest loans in the broader Index, gained 0.03% today.

In the year to date, loans overall have gained 2.65%.

A full xls of the Daily Index is available to LCD subscribers, please click here.

LCD Daily Loan Index – April 26, 2013

TOTAL RETURNS

All

Perf. Loans

L100

BB

B

CCC

For 4/26/13      0.03%      0.03%       0.03%

 0.02%

 0.02%

     0.21%

For 4/25/13      0.02%      0.02%      0.02%

 0.00%

 0.02%

     0.13%

           
Month-To-Date 4/26/13

 0.53%

     0.53%

  0.49%

0.29%

0.42%

    2.52%

12/31/12 – 4/26/13

2.65%

     2.77%

 2.66%

1.69%

2.85%

  7.86%

12/31/11 – 4/26/12

4.32%

     4.39%

 4.78%

3.34%

5.81%

   0.74%

Source: S&P/LSTA Leveraged Loan Index.

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Loan mutual funds, ETFs see 45th straight week of inflows

Retail-cash inflows into bank loan mutual funds and exchange-traded funds totaled $1.11 billion for the week ended April 24, according to Lipper FMI. That’s an expansion from $790 million last week and it’s the 45th positive reading for a huge inflow streak totaling $24.5 billion.

ETFs accounted for about a third of the inflow, at $354 million. That is the largest measurement of ETF inflow against mutual fund inflow this year, and, in fact, the largest such reading since the week ended Oct. 31, which showed also 32% of the flow.

The four-week trailing average dips to $936 million, from $973 million last week and $1.16 billion the week prior.

Looking at results in the year to date, inflows are $17 billion, with $14.8 billion to mutual funds and $2.2 billion directed towards ETFs. For comparison, net cash inflows over the same period a year ago totaled $1.2 billion, with the comparable breakdown $956 million and $274 million, respectively.

Total assets of the weekly reporter sample were $60.8 billion at the end of the latest observation period, which after stripping out the inflow shows an increase of about $23 million, or essentially an immeasurable gain due to market conditions. Total assets are up $15.8 billion in the year-to-date, for a 38% expansion. – Matt Fuller

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Leveraged loan returns: Loans gain 0.02%; YTD return is 2.62%

Loans gained 0.02% today after gaining 0.02% yesterday, according to the LCD Daily Loan Index.

The S&P/LSTA US Leveraged Loan 100, which tracks the 100 largest loans in the broader Index, gained 0.02% today.

In the year to date, loans overall have gained 2.62%.

A full xls of the Daily Index is available for LCD News subscribers.

LCD Daily Loan Index – April 25, 2013

TOTAL RETURNS

All

Perf. Loans

L100

BB

B

CCC

For 4/25/13

      0.02%

      0.02%

      0.02%

  0.00%

 0.02%

    0.13%

For 4/24/13

     0.02%

      0.02%

      0.01%

  0.02%

  0.01%

     0.06%

 

 

 

 

 

 

 

Month-To-Date 4/25/13

 0.49%

      0.50%

  0.46%

0.27%

0.40%

    2.30%

12/31/12 – 4/25/13

2.62%

      2.73%

 2.62%

1.67%

2.83%

  7.63%

12/31/11 – 4/25/12

4.27%

      4.34%

  4.73%

3.31%

5.76%

   0.46%

Source: S&P/LSTA Leveraged Loan Index.

 

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Coinmach sets $1.17B 1st- and 2nd-lien leveraged loan package for LBO by Pamplona

A Deutsche Bank-led arranger group is providing $1.17 billion of first- and second-lien loans to back Pamplona Capital Management’s purchase of Coinmach Services, sources said. The transaction also encompasses the acquisition of another business operating in one of Coinmach’s business lines.

The transaction will include a $75 million, five-year revolver, a $770 million, 6.5-year first-lien term loan and a $325 million, seven-year second-lien term loan. The term loans will be covenant-lite, sources noted. The transaction will leverage Coinmach at 3.3x on a net first-lien basis, and 4.8x on a net total basis.

Deutsche Bank and Morgan Stanley are joint bookrunners on the first-lien facilities and are joined as lead arrangers by KeyBanc, Credit Suisse and UBS. Deutsche Bank is sole lead on the second-lien loan.

The company’s $50 million delayed-draw term loan and $725 million term loan are both due in November 2014, according to Standard & Poor’s. Plainview, N.Y.-based Coinmach in late 2009 missed interest payments on a $175 million senior bridge loan due 2015 and a $225 million subordinated bridge loan due 2015 stemming from a 2007 LBO by Australia’s Babcock & Brown, and bridge lenders RBS and Deutsche Bank eventually took control of the company. – Chris Donnelly

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Albertson’s launches repricing, partial extension of $1.15B leveraged loan

Citigroup, Bank of America Merrill Lynch, Credit Suisse and Morgan Stanley this afternoon launched a repricing forAlbertson’s that would also extend the maturity of $700 million of the supermarket operator’s $1.15 billion TLB by approximately three years, according to sources.

The proposed transaction is split between a $450 million tranche that would have the same March 21, 2016 maturity as the $1.15 billion term loan that was syndicated in February and $700 million, six-year tranche.

The three-year tranche is talked at L+350, with a 1% LIBOR floor and a par offer price, while guidance on the six-year loan is L+375, with a 1% LIBOR floor, offered at par.

At the proposed guidance, the three-year loan would yield about 4.58% to maturity, while the six-year loan would yield 4.84%.

By comparison, the existing TLB is priced at L+450, with a 1.25% LIBOR floor. It was issued at 99.5 in late February.

The existing loan included six months of 101 soft-call protection and lenders are poised to be repaid at 101, sources said, noting that the issuer is offering to refresh the 101 soft-call protection on the three-year tranche for six months and is extending one year of 101 soft-call protection to lenders to the six-year loan.

Commitments are due on Wednesday, May 1.

Like the existing term loan, the proposed transaction would be covenant-lite. As the issuer is carving out a longer-dated term loan out of the originally three-year deal, sources note that prepayments would be made on a ratable basis, with the exception of proceeds from asset sales, which would first be applied to the term loan due 2016.

Citigroup, Bank of America Merrill Lynch, Credit Suisse, Morgan Stanley and Barclays in February syndicated the existing $1.15 billion TLB, proceeds of which backed Cerberus’ acquisition of Albertson’s from Supervalu.

Standard & Poor’s has assigned a B rating to the issuer. The existing term loan is rated BB-, with a 1 recovery rating. – Kerry Kantin