The Distressed Debt Report - June 7, 2006

Mariner Capital, Katonah Among Issuers of Billions in Small Company Debt

Asset managers will soon flood the market with collateralized loan obligations backed predominately by middle market loans. The volume of new CLO issues for the year will far surpass the record set in 2005. Full Story

Public market investors were clearly enthusiastic about the opportunity to participate in giant leveraged buyouts through Kohlberg Kravis Roberts & Co.'s recent public stock offering. They were also reportedly willing to put $1 billion into the IPO that Apollo Management completed today. Full Story

Second lienholders are getting more aggressive in seeking to cap the amount of future debt senior lenders can pile on top of them. "This is becoming a more contentious issue these days" in the drafting of intercreditor agreements, said Stephen Boyko, a partner in the junior debt practice of the Proskauer Rose law firm in Boston. Boyko discussed the issue on a June 1 webinar about intercreditor agreements, hosted by DealFlow Media, the publisher of SDR. Full Story

• Mezz Funds Including Canterbury Gain in IPOs
• Venture Lender Escalate Raises $194M
• IP Lender UCC Capital Acquired for $10.3M, Changing Strategy
• Spring Capital Starting $75M Mezzanine Fund
• CapitalSource, LaSalle to be Repaid in Sale of Bankrupt Easy Gardener
• CIT Starts Middle Market M&A Group
• Events

CKX Inc., the company that bought rights to the names and images of Elvis Presley and Muhammad Ali, received a $125 million credit facility from lenders including Bear Stearns & Co. and UBS Securities in one of the larger middle market debt financings of recent weeks. Full Story