Defaults Peak, Borrows Seek Debt, and Junk Loans Extend Gains

By Emre Peker

Oct. 23 (Bloomberg) -- High-yield, high-risk loan prices rose for a second straight week as companies acquired by the biggest buyout firms sought to refinance debt.

The Standard & Poor’s/LSTA U.S. Leveraged Loan 100 Index increased 0.11 cent this week to 85.57 cents on the dollar, rallying 38 percent for the year. In this week’s largest deal, Michaels Stores Inc., owned by Bain Capital LLC and Blackstone Group LP, is offering lenders a higher interest rate to extend a $1 billion-portion of its term loan. The company’s debt, included in the index, climbed 1.75 cent to 89.75 cents since Oct. 16, according to KDP Investment Advisors Inc. data.

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We are actively involved in this credit, please call or email Peter Aman for current market prices and/or more information about this situation.

We are also active in many other high yield and distressed corporate bonds.

Peter Aman

PAman@aps-financial.com

800-248-0630