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at 7:02pm

Leveraged loan returns: Loans lose 0.04% today, 0.8% yesterday; YTD return is 3.11%

Loans lost 0.04% today after losing 0.08% 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, lost 0.05% today.

In the year to date, loans overall have gained 3.11%.

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

LCD Daily Loan Index – May 24, 2013
TOTAL RETURNS

All

Perf. Loans

L100

BB

B

CCC
For 5/24/13      -0.04%      -0.04%       -0.05%

  -0.05%

  -0.03%

     -0.12%
For 5/23/13      -0.08%      -0.08%      -0.11%

  -0.03%

 -0.05%

    -0.62%
           
Month-To-Date 5/24/13

 0.38%

      0.34%

  0.41%

0.20%

0.29%

    1.34%
12/31/12 – 5/24/13

3.11%

      3.19%

  3.15%

1.94%

3.22%

  9.44%
12/31/11 – 5/24/12

3.96%

      4.06%

 3.98%

2.82%

5.06%

    3.73%

Source: S&P/LSTA Leveraged Loan Index.

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at 10:32am

School Specialty reorganization plan confirmed by bankruptcy court

The bankruptcy court overseeing the Chapter 11 proceedings of School Specialty yesterday confirmed the company’s reorganization plan, according to a court order filed in the case.

According to a second amended plan, also filed yesterday, the cash component payable to DIP lenders under the plan was increased to $98.3 million, versus $88.3 million under the prior version, as a result of the upsizing of the company’s exit term loan to $145 million, from $125 million.

As reported, lenders under the $155 million DIP are to receive the cash plus 65% of the company’s equity. A valuation by the lenders’ financial advisor, GLC Advisors & Co., valued the reorganized company in a range of $300-340 million, with a midpoint of $320 million.

As also reported, that midpoint, along with the company’s $145 million exit term loan, would result in an equity distribution value of $107.7 million, which in turn would result in a recovery to DIP lenders of $168 million, or about 108% (for a more complete analysis of recoveries, see “School Specialty panel’s valuation helps explain recent plan changes,” LCD, May 23, 2013).

According to a letter from the DIP lenders to the company, however, the DIP lenders said they “adopted” an enterprise value midpoint of $300 million for purposes of allocating the equity split between DIP lenders and convertible noteholders, which would result in a par recovery for DIP lenders. – Alan Zimmerman

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at 5:23pm

Cash inflows to loan mutual funds see largest level in 8 weeks

Retail-cash inflows into bank loan mutual funds and exchange-traded funds totaled $1.24 billion for the week ended May 22, according to Lipper FMI. This is a breakout inflow, the largest in eight weeks, and it maintains the sawtooth pattern that has developed over that span.

This latest result is higher than the $871 million from last week as well as the $1.03 billion in the week prior. It’s the 49th consecutive positive reading for a total inflow over that span of $28.4 billion. With that, the four-week trailing average rises to $993.3 million, from $960.8 million last week and $940.5 million the week prior.

ETFs accounted for about 19% of the inflow, at $241 million, which is the second highest dollar amount inflow for exchange traded funds.

Looking at results in the year to date, inflows are $21 billion, with $18 billion to mutual funds and $2.96 billion directed towards ETFs. For comparison, net cash inflows over the same period a year ago totaled $1.9 billion, with the comparable breakdown of $1.45 billion and $438 million, respectively.

Total assets of the weekly reporter sample were $67 billion at the end of the latest observation period, which after stripping out the inflow shows an increase of about $17.1 million due to market conditions. Total assets are up $25 billion in the year-to-date, for a 60% expansion. – Jon Hemingway

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at 4:27pm

Leveraged loans lose 0.08% today (triple-C’s tumble); YTD return is 3.16%

Loans lost 0.08% today after gaining 0.03% 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, lost 0.11% today.

In the year to date, loans overall have gained 3.16%.

LCD Daily Loan Index – May 23, 2013

TOTAL RETURNS

All

Perf. Loans

L100

BB

B

CCC

For 5/23/13

      -0.08%

      -0.08%

      -0.11%

  -0.03%

  -0.05%

     -0.62%

For 5/22/13

     0.03%

      0.02%

      0.03%

  0.01%

  0.02%

     0.13%

 

 

 

 

 

 

 

Month-To-Date 5/23/13

 0.42%

      0.38%

  0.46%

0.24%

0.33%

    1.46%

12/31/12 – 5/23/13

3.16%

      3.23%

  3.20%

1.99%

3.26%

  9.57%

12/31/11 – 5/23/12

4.02%

      4.12%

  4.03%

2.85%

5.09%

    3.93%

Source: S&P/LSTA Leveraged Loan Index

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at 12:46pm

Beats Electronics readies $700M leveraged loan backing dividend/recap

Barclays, Citigroup, and J.P. Morgan have set a noon EDT meeting for next Wednesday, May 29 to launch a $700 million loan for Beats Electronics, according to sources.

Proceeds will refinance debt, fund a distribution to shareholders, and back general corporate purposes.

The credit is split between a $200 million revolver and a $500 million B term loan. Additional terms have not circulated the market yet.

The Santa Monica, Calif.-based company manufactures fashionable high-end headphones and speakers. Beats was founded in 2006 by hip-hop producer Andre “Dr. Dre” Young and Interscope-Geffen-A&M records chairman Jimmy Iovine. – Kelly Thompson