Business in the Burbs » Credit

Haights Cross reaches agreement on debt restructuring

Jay Loomis — Fri, 21 Aug 2009 18:59:15 +0000

Haights Cross Communications Inc., a White Plains-based library and educational publisher, said that it has reached agreement with major lenders on a restructuting of the company’s debt and credit agreement that should improve its financial outlook.

The company added that the restructuring is not expected to lead to changes in its Triumph Learning and Recorded Books businesses.

“We will continue to acquire rights and publish new products, market and sell all our products to all customer segments, and plan to continue to pay our vendors, licensors and employees on a timely basis,” Chief Executive Officer Paul J. Crecca said in a written statement. “Once the restructuring of the Haights Cross debt is complete, the enterprise will be significantly deleveraged, a very positive outcome for our businesses.”

MBIA’s credit rating cut by Moody’s

Jay Loomis — Thu, 25 Jun 2009 20:48:30 +0000

MBIA Inc., the Armonk-based bond insurer that suffered heavy losses stemming from the subprime mortgage crisis, had its credit rating lowered by Moody’s Investors Service.

MBIA’s rating was downgraded to Ba3 from Ba1, according to Moody’s. Both ratings are considered junk bond territory.

“These rating actions reflect further expected insured portfolio deterioration at MBIA Insurance Corp. and the uncertainty stemming from ongoing litigation challenging MBIAís recent restructuring,” Moodyís said in a written statement.

MBIA was hit hard last year, as the weakest housing market since the early 1970s resulted in large numbers of homebuyers defaulting or falling behind on their mortgage payments. As home foreclosures soared, MBIA took big write-downs on the mortgage bonds that it had insured.

MBIA bond ratings lowered by Standard & Poor’s

Jay Loomis — Mon, 15 Jun 2009 19:38:04 +0000

MBIA Inc., the Armonk-based bond insurer that suffered heavy losses as the housing bubble collapsed, had the ratings on 11 insurance-backed bond issues downgraded by Standard & Poor’s Ratings Services. The drop in the bond rating to BBB from BBB+ reflected the recent drop in the financial strength rating of MBIA’s insurance subsidiary, according to Standard & Poor’s.

Bunge reaches loan agreements with banks

Mike Bieger — Thu, 04 Jun 2009 17:18:40 +0000

Bunge Ltd., the White Plains-based agribusiness giant, said that it has entered into two loan agreements with a group of banks that will give it a borrowing capacity of $1.65 billion.

Banks participating in the loan agreements include JPMorgan Chase Bank, Citibank, BNP Paribas, Calyon New York Branch and CoBank, ACB.

Bunge said that the loan agreements will give the company the financial flexibity to manage and grow its business.

The new credit agreements will replace two existing agreements that were due to expire this year. Bloomberg News also reported that Bunge plans to sell $400 million of 10-year senior notes to give it additional flexibility.

PepsiCo sells $1 billion of notes

Jay Loomis — Thu, 26 Feb 2009 19:37:50 +0000

PepsiCo Inc., the Purchase-based beverage and snack food giant, sold $1 billion of notes as it became the latest major company to raise capital in the credit markets, according to a company filing with the U.S. Securities and Exchange Commission. The 3.75 percent senior notes will mature in 2014. Interest payment dates are scheduled semi-annually on March 1 and Sept. 1, starting on the latter date this year.

EpiCept repays credit agreement

Jay Loomis — Tue, 24 Feb 2009 23:09:09 +0000

EpiCept Corp., a Tarrytown-based biotech company, said that it has repaid the outstanding principal balance and fees of a $10 million credit agreement with Hercules Technology Growth Corp., a specialty finance company in Palo Alto, Calif. EpiCept added that it has no further obligations under this agreement. EpiCept hopes to file an application seeking U.S. regulatory approval for Ceplene, a new leukemia treatment, during the second half of 2009.

Starwood credit rating cut to junk by Fitch

Jay Loomis — Wed, 04 Feb 2009 22:24:23 +0000

Starwood Hotels & Resorts Worldwide Inc., hurt by a travel slowdown in weakening global economy, had its credit rating cut to junk by Fitch Ratings. The cut in the rating to BB+ from BBB- came after the White Plains-based operator of the Sheraton and Westin hotel chains last week said that profits fell 46 percent during the fourth quarter. Fitch said in a report that Starwood is suffering from “extremely limited operating visibility” in a deepening global recession that has caused business and leisure travelers to book fewer hotel stays.

New agent named for Jarden loan agreement

Jay Loomis — Thu, 29 Jan 2009 21:22:38 +0000

Jarden Corp., the Rye-based consumer products maker, said that Deutsche Bank AG will replace Lehman Brothers’ commercial paper subsidiary as the administrative agent for a loan agreement that supplies credit to Jarden.

The change is part of Jarden’s settlement of outstanding claims against Lehman Brothers, which filed for bankruptcy last year. The settlement also includes repayment of Lehman’s outstanding revolving credit loans to Jarden on mutually acceptable terms to both parties, according to Jarden.

“We are happy to put the distraction of Lehman’s bankruptcy behind us and we look forward to our new expanded relationship with Deutsche Bank,” said Martin E. Franklin, chairman and chief executive officer at Jarden.

Jones Apparel shares climb 44%

Jay Loomis — Fri, 26 Dec 2008 22:21:39 +0000

Shares of Jones Apparel Group Inc. soared 44 percent yesterday after the New York-based clothing and shoe maker cut back on its credit lines and gained borrowing flexibility to navigate through one of the toughest retail climates in decades.

Jones, the parent company of shoe designer Nine West Group in White Plains, said that its $750 million credit line maturing in May 2010 was trimmed to $600 million, reflecting its current business needs. In addition, Jones said that a $500 million credit line that matures in June was canceled.

The company said that the successful negotiations with lenders to adjust its existing credit agreements will give it greater flexibility to run its businesses “during these unprecedented economic times.”

Bloomberg News reported yesterday that the holiday shopping season may have been the worst in four decades after consumers spent 20 percent less on women’s clothing, electronics and jewelry during November and December. The weakness in consumer spending has put pressure of Jones and other apparel companies that supply traditional department stores and increased investor concerns about their debt levels.

The company’s brand names include Nine West, Jones New York, Kasper, Bandolino, Enzo Angiolini, Anne Klein and Gloria Vanderbilt.

“We are pleased with the overwhelming support of the financial institutions associated with the amendment process and believe it was prudent to pursue amendments now that allow financial flexibility in the current uncertain economic environment,” Chief Financial Officer John T. McClain said in a written statement.

Shares of Jones surged $1.73 to $5.62 in regular trading yesterday on the New York Stock Exchange.

The percentage gain of 44 percent was the largest daily gain in 17 years, according to Bloomberg. Even with the strong day, the shares remained far below the 52-week high of $22.12 on Sept. 9.

Jarden sees no â€œmaterial exposureâ€ to Lehman, AIG

Jay Loomis — Mon, 15 Sep 2008 21:34:46 +0000

Jarden Corp., the Rye-based household products manufacturer, said that it has taken steps to alleviate any potential impact from the worsening credit crunch and the collapse of investment banking giant Lehman Brothers.

Lehman provides less than 10 percent of the financing under Jardenâ€™s revolving credit agreement. But hours after Lehman announced the largest bankruptcy reorganization in U.S. history, Jarden announced that it plans to replace Lehman as administrative agent on the credit agreement.

â€œOur early action and contingency planning is designed to protect our businesses from the impact of macro events such as the recent developments in the financial services sector,â€ Martin E. Franklin, chairman and chief executive officer of Jarden, said in a written statement.

Jarden said it also has reviewed the coverage provided by troubled insurer AIG â€œto confirm it has no material financial exposures at this level.â€