Sure is slated for the 15th.
The games go on and on. Already have a plan for a feel good Monday. I wonder what's scheduled for Tue etc. Won't work anyway. Jittery sellers will be the dominant force next week, probably precipitated by some good old fashioned overseas panic/profit-taking.
Corporate Earnings Worry Wall Street
Saturday October 13, 6:05 am ET
By Joe Bel Bruno, AP Business Writer
Wall Street Worrying That Companies' Third Quarter Earnings Might Be Disappointing
Anyone here attending the meeting? Place is sold out at least a year in advance. Kind of odd that they released the specific location.
trustinternational.com
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KKR Bankers to Start Selling $11 Billion Debt for Former TXU
By Bryan Keogh and Pierre Paulden
Oct. 12 (Bloomberg) -- Banks for Kohlberg Kravis Roberts & Co. and TPG Inc. will start selling at least $11 billion of loans and bonds next week to fund the buyout of the former TXU Corp., in the largest debt offering since credit markets froze in July, according to people briefed on the plans.
Citigroup Inc., JPMorgan Chase & Co. and four other banks will meet with investors on Oct. 15 at the Pierre Hotel in Manhattan to offer $4 billion to $5 billion in notes and $7 billion of senior secured loans to fund the purchase of Energy Future Holdings Corp., said the people, who declined to be named because terms aren't set.
The banks are betting investor appetite for high-yield, high-risk debt has increased enough to sell loans and bonds concurrently. The syndication of $9.4 billion in loans for KKR's purchase of First Data Corp. earlier this month signaled that demand may be returning. The $32 billion purchase of the Dallas- based power provider, which closed this week, was the largest U.S. leveraged buyout.
``This deal will be received very positively,'' said Margaret Patel, who oversees $1.8 billion as senior portfolio manager at Evergreen Investment Management Co. in Boston. ``TXU is a good credit with great assets.''
The bonds to be sold next week will include $2 billion to $3 billion issued by the Texas Competitive Electric Holdings Co. LLC unit and $2 billion by TXU Corp., according to KDP Investment Advisors Inc. The Texas Competitive notes may yield about 10 percent and the TXU debt may pay interest of about 10.5 percent, Justin Monteith, an analyst at Montpelier, Vermont-based KDP, said today in a report.
Discounts Offered
Energy Future Holdings agreed to pay as much as 3.5 percentage points more than the London interbank offered rate on the bank loans, according to a regulatory filing yesterday. They will be offered at 99 cents to 99.5 cents on the dollar, according to two of the people.
Three-month Libor, a borrowing benchmark, is currently set at 5.22 percent. A basis point is 0.01 percentage point.
First Data, which offered a narrower spread of 275 basis points over Libor, sold its loans at a discount of as much as 4 percent.
The banks will also sell $2.4 billion of so-called toggle notes that would allow the borrower to pay interest in added debt instead of cash, according to the KDP report.
Citigroup and JPMorgan Chase are managing the sale of the bank loans. A group of banks led by Morgan Stanley and Goldman Sachs Group Inc. are handling the bond sale. Credit Suisse Group in Zurich and New York-based Lehman Brothers Holdings Inc. also committed to provide financing.
Citigroup spokeswoman Danielle Romero-Apsilos declined to comment. Spokespeople for JPMorgan, Morgan Stanley and Goldman Sachs, all based in New York, didn't immediately return telephone calls seeking comment.
Relief for Banks
``If it's successful, underwriters will be moving almost half of the financing that they committed for this massive LBO off of their books and into the markets,'' Monteith wrote in a report. The ``hot reception'' given to debt from metals distributor Ryerson Inc., automotive parts supplier Allison Transmission and orthopedic-implant maker Biomet Inc. is ``enticing the banks to unload some of their bigger deals.''
The banks must hold on their books any debt they can't sell.
The loans will comprise a $2.7 billion revolving credit line, a $1.25 billion letter of credit facility, a $16.5 billion term loan and a $4.1 billion delayed draw term loan, according to a filing this week with the U.S. Securities and Exchange Commission. In a revolving credit facility, money can be borrowed again once it's repaid; in a term loan, it can't.
The extra yield investors demand to own high-yield debt rather than Treasuries has narrowed 70 basis points since First Data's banks began marketing its loans Sept. 17, according to Merrill Lynch & Co. index data.
To contact the reporters on this story: Bryan Keogh in New York at bkeogh4@bloomberg.net ; Pierre Paulden in New York at ppaulden@bloomberg.net ;
Last Updated: October 12, 2007 18:27 EDT |
