Whether you're contemplating an acquisition or LBO, or simply trying to optimize your balance sheet, several factors will help you determine whether high-yield debt
is right for you.
Overall, the current market for high-yield debt
is extremely strong, as money inflows to high-yield mutual funds - the primary driver of demand for high-yield debt
- resembles the glory days of 1998/1999.
Christensen and Faria's test, in short, does not really address the question of an equity component in straight high-yield debt
Lewis used high-yield debt
, or "junk bonds," to acquire the company in a $985 million leveraged buyout, beating out such powerhouses as Citicorp, Pillsbury and Shearson Lehman Brothers.
In June 1998, a reverse takeover of ICC for $38m was proposed by fellow Colorado ISP, Rocky Mountain through a high-yield debt
Internal Revenue Code section 163(e)(5), the test for high-yield debt
instruments, must be avoided.
When I wrote one of the early versions of the high-yield debt
market's "anatomy" study (Altman ), this low-grade debt sector had grown from a relatively insignificant $7 billion total in the early and mid-1970s to a dynamic, continously increasing force in corporate finance of about $125 billion outstanding, as of the beginning of 1987.
Tucker has expertise over all product areas including M&A, equity, acquisition finance, investment grade and high-yield debt
, derivatives, FX, commodities, trade finance, and cash management.
At end-February, of the 38 corporates with a score of SGL-4, 30 have rated debt accounting for $18.7 billion, or 29.61% of the $63.1 billion of Moody's rated high-yield debt
He has worked on a wide variety of both public and private debt, equity and equity-linked offerings by issuers in various industries, including IPOs and other equity offerings, investment-grade and high-yield debt
financings, and mandatory and optional convertible securities offerings.
Fund Manager Gregg Winter has 16 years of experience originating and servicing this type of high-yield debt
Barry Murphy, a high-yield debt
analyst at Bear Stearns in London, said he expected volatility to continue in NTL bonds - and cable firms' bonds in general - although NTL was less exposed than its US peers because of its European business focus.