content

Obituary: Keith Barnish, 58, was loan market pioneer

Keith Barnish, a loan market pioneer, died on April 20 at the age of 58. Over his distinguished, 30-plus-year career, Barnish held senior positions at Toronto-Dominion Bank, Security Pacific Bank, Bank of America, and Bear Stearns, where he held the title of Co-head of Global Acquisition Finance and Financial Sponsors. Most recently, Keith was Senior Managing Director and Head of Leveraged Asset Management at Doral Financial Corp.

Over his long tenure in the loan market, Barnish was a mentor and great friend to legions of leveraged finance and capital markets professionals, many of whom credit him with being an original thinker who played an important role in propelling a nascent loan syndications business to the global investment capital market that it is today.

Barnish is survived by his loving wife, Joyce White Barnish, and their beloved children, Ashley, Keith, and Justin. In lieu of flowers, the family would appreciate donations to the Delbarton School, for the renovation of Old Main, 230 Mendham Rd., Morristown, N.J., 07960.

content

Tronox $1.48B leveraged loan repricing enters secondary above par issuance

tronox_200x200Accounts this afternoon received allocations of the $1.48 billion repriced term loan for Tronox, which broke for trading into a 100/100.375 market, from issuance at par, sources said. The covenant-lite loan due March 2020 is priced at L+300, with a 1% LIBOR floor. Goldman Sachs and UBS arranged the transaction, which reduces the spread by 50 bps, from L+350 currently; the existing loan is callable at par. The transaction cleared wide of original talk, while the arranger also added ratings-based step-ups in pricing. Oklahoma City-based Tronox is a global producer of titanium-dioxide pigment, which creates whiteness, brightness, and opacity in paint, paper, and plastic. Terms:

Borrower Tronox
Issue $1.48 billion TLB
UoP Repricing
Spread L+300
LIBOR floor 1.00%
Price 100
Maturity March 2020
YTM 4.06%
Call protection 12 months 101 soft call
Corporate ratings BB/Ba3
Facility ratings BBB-/Ba2
S&P recovery rating 1
Financial covenants none
Arrangers GS, UBS
Admin agent GS
Price talk L+275-300/0.75%/100
Notes Includes 25 bps step-ups at B+/B1 and B/B2
content

Loan fund inflow streak snapped at 95 weeks

For the first time since June 2013 retail-cash outflows were logged from bank loan mutual funds and exchange-traded funds as $249 million was pulled in the week ended April 16, according to Lipper.

To be sure, the outflow was not unexpected and inflows over the previous four weeks had dwindled steadily to just positive $48 million last week, a 75-week low. For the record, as outflows go, this week’s was also the largest since October 2011.

With this result the four-week trailing average slumps to positive $46 million, from positive $190 million last week, and $321 million in the week prior. Of this week’s total outflow, 9% was tied to the ETF segment.

The streak of retail cash inflows into loan funds ran 95 weeks, for a total of $66.7 billion over that span, by the weekly reporters only.

Year-to-date inflows total $6.7 billion, of which $1.06 billion is ETF-related, or 16% of the sum. In the comparable year-ago period, inflows were $14.1 billion, with 12% tied to ETFs.

The change due to market conditions was negative $190 million. Total assets stood at $109.1 billion at the end of the observation period, with ETFs comprising $8.4 billion of the total, or approximately 8%. – Jon Hemingway

LL4.16-650