by Ron Carleton | Oct 19, 2009
In the last 6 months, we’ve seen a number of “amend and extend” transactions. Typically they involve: The extension of the maturity of a term loan and/or revolver (typically for syndicated, non-investment grade loans). This is only for lenders who...
by Ron Carleton | Aug 11, 2009
High Credit Spreads Match High Credit Risk Since the credit crisis began in the summer of 2007, and especially since the credit markets fell of the cliff in the fall of 2008, we have seen credit spreads in the loan and bond markets increase dramatically. Some...
by Ron Carleton | Jun 24, 2009
According to Bloomberg.com, American Airlines is asking its lenders for a covenant waiver. A conference call was held on June 22 and responses are due by June 25. Why the rush? The covenant would be waived for the quarter ending June 30, so the company wants the...
by Ron Carleton | Jun 17, 2009
With the weak economy, we are seeing more companies breach covenants in their loan agreements. Such a default typically gives lenders these right: Acceleration (i.e. “call the loan”) – declare the principal of the loan to be immediately due and...
by Ron Carleton | Jun 10, 2009
Bio-Rad Laboratories Inc. is a life sciences company with sales of over $1.7 billion. In May of 2009, it issued $300 million of 7-year notes in a 144A offering through Credit Suisse. The company refers to the new debt as Senior Subordinated Notes. Does this mean the...
