2019 – Farhin Lilywala

High Yield 2020 Pipeline: Low rates expected to tempt opportunistic issuers

Historically low funding costs are set to encourage opportunistic high yield issuance in 2020, with investors hungry for paper after geopolitical disruption, recession fears and trade tensions weighed on dealmaking activity in 2019 and Fed policy drove fixed-rate spreads tighter. As the turn of the decade approaches, Debtwire has compiled a list of companies that could tap…

Shutterfly 3Q19 earnings snap negative, management pictures 4Q burst

Shutterfly yesterday reported earnings showing the photography company’s EBITDA for 3Q19 went deeper into negative territory in its first quarter of earnings following an LBO by Apollo Global Management, according to two sources familiar with the situation. The borrower’s EBITDA declined to negative USD 46m compared with negative USD 26m in 3Q18, the sources noted. But…

Cox Media financing for Apollo buyout airs possibility of near-term dividends – Deal Preview

Cox Media’s debt financing backing its acquisition by Apollo allows for ample free cash flow, but weak investor protections are also top of mind for buysiders, according to nine sources familiar with the matter. In particular, Cox’s ability to pay sponsor dividends soon if not immediately at deal close has garnered pushback, and is squarely…

Antero rises on 2020 debt reduction plan, ambitious asset sale program

Antero Resources’ capital structure spiked this morning after the E&P disclosed debt reduction and cash flow generation strategies for 2020 and onward, according to three sources familiar with the matter. Sources are cautiously optimistic about the company’s new strategy, deeming it a step in the right direction. Still, aspects of the plan could be a…

Michaels lackluster earnings pressure bonds, portend weakness for Jo-Ann Stores

Michaels Stores capital structure plummeted this morning after the arts and crafts retailer reported disappointing 3Q19 results and cut full year guidance, citing pressure from online competition, according to four sources familiar with the matter. The sector weakness is expected to seep into the results for fellow crafts retailer Jo-Ann Stores as well, two of the sources said.…

Twitter investors aflutter over free cash flow and liquidity stockpile – Deal Preview

High yield investors are flocking to Twitter’s debut offering, citing the social media company’s abundant free cash flow and overall cash balance – a dynamic that sets it apart from cash burning tech unicorns like Uber and Tesla, according to six sources tracking the deal. The company’s marketing efforts in support of the initial deal will additionally help open…

Chesapeake Energy withdraws from BofA leveraged finance conference

Chesapeake Energy executives have canceled a planned appearance at the Bank of America Merrill Lynch 2019 Leveraged Finance Conference taking place this week in Boca Raton, Florida, according to two sources familiar with the matter. The development caused several of issuer’s bonds to strengthen by 1-2 points amid speculation that the company has strategic news to…

Sycamore sells down Staples unsecured bonds after lockup expiration

Staples sponsor Sycamore Partners is in the process of selling down its position in the issuer’s unsecured notes, after a lock-up agreement rolled off this past September, according to two sources familiar with the matter. The sponsor stepped in to lend a hand to syndication of the USD 1bn 10.75% senior unsecured notes due 2027 this…

Hilcorp plans USD 1bn M&A bond issuance; 3Q19 EBITDA descends 37% YoY

Hilcorp Energy reported steep declines for EBITDA and revenue in 3Q19, causing its bonds to soften even as investors are primarily focused on the upcoming transformative acquisition of BP’s midstream and upstream assets in Alaska, said two sources familiar with the matter. On the earnings call, management gave investors a glimpse of how it plans to finance…

Helix Generation 3Q19 EBITDA rises 17% YoY

Helix Generation reported year-over-year improvement in EBITDA and gross margin in 3Q19, according to two sources familiar with the matter. The LS Power-owned borrower booked USD 49m of EBITDA for the quarter, compared to USD 42m in 3Q18. Gross margin for the quarter totaled USD 76m, up from USD 69m last year, the sources said. The company’s…