The Distressed Debt Report - October 21, 2006

Upcoming changes in bank regulations may bring a wave of new issues of middle market collateralized loan obligations sponsored by commercial banks. Full Story

The tidal wave of private equity washing across the U.S. mergers and acquisitions market may be on the verge of driving purchase price multiples for middle market leveraged buyouts to the hightest levels in a decade. Full Story

Concerns Rise About Insider Trading on Debt Investments

A trade association representing banks and funds that trade syndicated debt issued guidelines last week to help its members avoid charges of insider trading. Full Story

• Speculative-Grade Loan Market Grows to More than Triple Bond Market
• Golub Raises $700M for Fifth Fund
• Cofounder Leaves Black Diamond
• Morgan, Merrill Invest in Debt Funds
• Amaranth Said to Get High Prices in Debt Sales
• Ritchie Restructures To Allow Redemptions
• Former Treasury Secretary Named Chairman of Cerberus
• Shares of Mezzanine Firms Included in New Exchange-Trade Fund
• Musicland Trade Vendors May Collect on One-Third of Second Lien Claims
• SBA Liquidates Texas SBIC

Other Middle Market Loans Go For Packaging Acquisition, Ethanol Plant

Wachovia Bank and Citibank Global Market Realty loaned $370 million in new mortgage debt and provided a $225 million revolving credit facility to Morgans Hotel Group in one of the biggest recent debt financings by a middle market company. Full Story