The Wall Street Journal
Aug 09, 2017
"“This [Tesla] is basically an equity story,” said Michael Cazayoux, a high yield analyst at KDP. “The bond market is more of a professional market and we’re looking at it from credit metrics.”"
Jun 26, 2017
"Construction is a decent-sized part of Arconic’s business, though it isn’t their focus,’’ said Mike Cazayoux, a credit analyst at KDP Investment Advisors.
“The real problem here is the potential liabilities from not only the deaths in and of themselves, but also the cost of retrofitting other buildings with the panels. Those factors could have a credit impact.’"
May 02, 2017
"Bond research firm KDP raises Rent-A-Center’s 2017 Ebitda forecast and says turnaround plan is off to a “good start” in a note Tuesday."
Mar 09, 2017
"Valeant Pharmaceuticals International was out selling billions of dollars in notes to refinance some of its short-term maturities on Thursday. It also refinanced billions in loans.
On offer were $1.25 billion of five-year notes at 6.5% and $2 billion of seven-year notes at 7%. The offer was upsized from $2 billion. Mark McCabe of KDP Investment Advisors wrote in a research note that he finds both offers attractive."
CBS News / Associated Press
Feb 10, 2017
"“The equity markets continued their onward advance buoyed by President Trump’s promise to unveil a plan to reduce corporate taxes,” analysts with KDP Investment Advisors said in a note."
Dec 03, 2016
"Far more money — 44 percent of CoreCivic’s 2015 revenue, said Terry Dwyer, an analyst with KDP Investment Advisors — flowed from contracts for detention centers run on behalf of Immigration and Customs Enforcement and the United States Marshals Service...“The outlook for the companies really changed overnight with the election of Mr. Trump,” Mr. Dwyer of KDP Investment Advisors said."
Sep 15, 2016
"The view is different for bondholders, according to Barbara Cappaert, an analyst with KDP Investment Advisors Inc. Putting the interactive business in an unrestricted subsidiary means that cash may not be available to pay interest or reinvest in the company’s other businesses, she said. Funds could be used to buy back stock or declare a dividend."
Jul 27, 2016
"KDP’s Scott Dinsdale, headlined his Tuesday report, “Sprint 1Q16 Surprising Sub Adds, But At What Cost?” noting that although subscriber growth was impressive, it came thanks to major price cuts."
Jun 02, 2016
"Terrence Dwyer, an analyst at KDP Investment Advisors, downgraded the bonds to hold from buy last week, saying that while Erickson has signed deals to work with the State of Alaska, National Aeronautics and Space Administration and the U.S. Department of Defense, it hasn’t found new business to replace contracts in Afghanistan."
Apr 19, 2016
"The company is taking advantage of a window that’s reopened for junk-rated borrowers to push out debt maturities, according to Spencer Godfrey, an analyst at high-yield research firm KDP Investment Advisors Inc. Yields on junk bonds have declined to as low as 8.17 percent on April 15, down from 10.17 percent in February, according to Bank of America Merrill Lynch index data.
“For cable operators, credit markets have been pretty open,” Godfrey said."
Mar 02, 2016
"While HCA said the proceeds were for general corporate purposes, KDP Investment Advisors pointed out in a research note that HCA has been an active stock repurchaser."
Feb 25, 2016
"SandRidge is likely to file for bankruptcy, analysts at junk bond research firm KDP Investment Advisors Inc. wrote in a report last week."
Feb 04, 2016
"“The yields are attractive and the combination of the companies in the merger makes for a high quality company that should generate a ton of cash,” Spencer Godfrey, an analyst at high-yield research firm KDP Investment Advisors Inc. in Montpelier, Vermont, said in a telephone interview. “The management team has expressed a desire to have less leverage and they should be able to find synergies, which is comforting.”"
Feb 04, 2016
"KDP Investment Advisors is looking for a significant improvement in earnings in 2017 and 2018 following the company’s expected startup of a tissue manufacturing facility and efficiency gains, analyst Brian Bogart said Thursday in a report. Resolute should benefit from exposure to this market, “which has steadier demand and better growth prospects than the company’s other products,” he said in the report."
Oct 24, 2015
"KDP Investment Advisors wrote last week that it doubts Valeant is using an affiliated pharmacy, Philidor, to “stuff the channel” with product, as alleged by some shorts. But, KDP added, the lack of disclosure about Philidor calls into question Valeant’s “management integrity/competence.”"
Oct 17, 2015
" The $2.5 billion in offering proceeds fell short of management’s expectations of $3.5 billion, as well as those of KDP Investment Advisors, a Montpelier, Vt., high-yield analysis outfit. Some $2.1 billion will go toward paying off high-cost junk bonds with 11.25% and 12.625% coupons reminiscent of the Milken era. But KDP says leverage remains higher than “we are comfortable with,” even after the IPO."
Oct 17, 2015
"KDP issued a Sell recommendation on Netflix bonds last week, noting the persistent negative cash flows from the heavy investing in programming, even as subscriber rolls expand, especially internationally. So far, the stock bulls haven’t minded the heavy spending, in hopes of the big potential payoff as video on demand possibly supplants traditional viewing.
But that depends on bond investors continuing to fund those investments. KDP doesn’t think they’re getting paid enough—coupons range from 5.375% to 5.875% on bonds due in six-to-10 years with mid-level junk ratings (B1 by Moody’s, B-plus by Standard & Poor’s)."
Oct 01, 2015
"Profit hasn’t kept pace, and the company has been plagued by operational issues, according to a recent note by Spencer Godfrey, an analyst with KDP Investment Advisors Inc. The integration of Westwood One, acquired in December 2013, has been particularly bumpy.
“Operations at Cumulus have clearly been hit hard over the past few quarters and were adversely impacted by a fall-off in demand for radio advertising, as well as the apparent chaotic operating environment at Westwood One,” Godfrey wrote in an Aug.
3 research note. He said then that management was trying to stabilize operations."
Sep 21, 2015
"Cablevision will have to raise $8.6 billion in debt, of which $2.5 billion will be used for refinancing and $6.1 billion will be incremental, according to a research note last week from KDP Investment Advisors Inc. That will push leverage to about 8 times a measure of earnings, KDP analyst Spencer Godfrey said."
Sep 17, 2015
""They’re just going to leave the Cablevision bonds outstanding, so those bondholders will now have company that’s significantly more levered," said Spencer Godfrey, an analyst at KDP Investment Advisors Inc. "This is terrible for bondholders." "In Altice’s presentation, they’re claiming they’ll get over $1.1 billion synergies, which I don’t think is realistic,"
Aug 24, 2015
"The bank reviews may spell trouble for companies such as Swift Energy Co., which abandoned a $640 million loan offering in July that was to be used to repay borrowings under its credit line. Its $375 million borrowing base is likely to be cut when the company’s lenders review it in November, according to Kenneth Duffel, an analyst at KDP Investment Advisors Inc."
Jul 26, 2015
"According to a report by KDP Investment Advisors, which specializes in high-yield credits, while United Rentals met expectations for earnings before interest, taxes, depreciation, and amortization, its balance sheet showed that cash balances and liquidity declined as the company drew on bank-credit lines to fund the redemption of notes and stock repurchases. In addition, United Rentals announced a new, $1 billion share repurchase, which may be more propitiously timed given that the stock price is down nearly 37% this year."
Jun 03, 2015
"The company has high leverage, a concentrated customer base and highly competitive industry conditions, according to a report from KDP Investment Advisors Inc. last month."
May 28, 2015
"In issuing the bonds, SandRidge agreed to cut its borrowing base to $500 million from $900 million, KDP Investment Advisors wrote in a report Thursday."
May 26, 2015
"“It will be a big bite to take for high-yield buyers,” Spencer Godfrey, an analyst at high-yield research firm KDP Investment Advisors Inc. in Montpelier, Vermont, said in a telephone interview. “Charter will be one of the largest, if not the largest, issuer in the high-yield market.”"
Mar 31, 2015
"The deal “is a de-leveraging event,” Spencer Godfrey, an analyst at high-yield research firm KDP Investment Advisors Inc. in Montpelier, Vermont, said in a telephone interview. “Bonds would probably have rallied even more if there weren’t so many moving parts to all these deals.”"
Mar 13, 2015
""Valeant will get the deal for Salix,” said Mark McCabe, a credit analyst at KDP Asset Management Inc. “It’s a bigger company and has a track record of smoothly integrating acquisitions.”"
Mar 02, 2015
"KDP Investment Advisors gaming analyst Barbara Cappaert following the conference call that “it pains us to have to agree” with Caesars assessment that a quick resolution is needed for the bankruptcy restructuring.
“To be sure, we are not happy with any of the transactions which served to move assets off of the CEOC balance sheet and to strip away parent company guarantees,” Cappaert said. “However, litigating this could serve to drag out when creditors will see their claims settled and this too would impact eventually returns.”
Cappaert said several creditor groups continue to seek an examiner to investigate the company’s capital structure transactions which occurred in the last two years before the bankruptcy."
Jan 24, 2015
"Since the acquisition, Heinz’s finances have improved, Thomas Ferguson, an analyst with Montpelier, Vermont-based KDP Investment Advisors Inc. said in a note to clients.
“The company has consistently met expectations over the past several quarters,” Ferguson wrote. “We continue to regard them as fairly valued.”"
Jan 02, 2015
"Kingman D. Penniman, the founder and president of KDP Investment Advisors, Inc. in Montpelier, Vt., said that the junk market “clearly did not see the pressures we are currently witnessing,” particularly as regards the breathtaking collapse of oil prices, and along with them the spectacular fall in many energy-sector issues. “The roller-coaster ride and volatility can continue in the short-term,” but he added that “the demise of energy credits, and the high-yield market in particular, is greatly exaggerated.” The current situation, he said, “should not have a long shelf life. To the extent that market participants will be more discriminating and more conservative going forward, the better.” Penniman said the big question at this point is “how low can prices go – but more importantly, how long can they stay low?” His shop, like a number of others, is modeling its 2015 assumptions for the high-yield energy sector on an average $65 price for a barrel of crude oil, even though that downside support level has now been breached. He expects that to reach that $65 average figure for the year, prices will be “sharply lower in the first half [of 2015], before rebounding into year-end – not the end-of-the-world scenario.” OPEC, as well as such large non-OPEC producers like Russia and Mexico, might be inclined to re-think November’s decision to not cut output, possibly “well before mid-2015.”
He said that “our outlook on the markets is that the more oil prices plummet and inflect pain, the sooner there will be a resolution so the markets can stabilize.” Even assuming that energy prices will continue to retreat at least for the first half of the new year, “a lot of these companies have the liquidity and the capability to get though that period,” he said. “Most of the companies that we see are not going to have a problem in 2015,” even in the current low-oil price environment,” he asserted."
Nov 24, 2014
"KDP Investment Advisors gaming analyst Barbara Cappaert said in a research note the value returned to first-lien bondholders “would come on the backs of more junior creditors.”
She said it was likely Caesars would avoid making an interest payment on second-lien notes due next month.
“This would save the company just over $260 million which could be used in the bucket of value available for the entire restructuring,” Cappaert said.
She was also supportive of the REIT concept.
“The plan confirms our belief that bank debt holders will be made whole,” Cappaert said said. “We could see some movement to give more value to first lien bondholders.”"
Oct 30, 2014
"“They’ve avoided running into their maturity walls, but I’m not sure that the outcome is going to be any different,”
Spencer Godfrey, an analyst at high-yield research firm KDP Investment Advisors Inc. in Montpelier, Vermont, said in a telephone interview yesterday. “They’re going to be burning cash from here on out.”
“That leaves very little room for any expansion on their capital spending or initiatives in the absence of asset sales which they’ve been forced to do,” said Godfrey, who rates the company’s $916 million term loan B due in January 2016 “hold”
and has a “sell” recommendation on its $849.8 million of 10 percent notes due in January 2018."
Oct 17, 2014
"These steps are just part of a long march to a likely late-in-the-year restructuring announcement,” KDP Investment Advisors gaming analyst Barbara Cappaert said. “It appears that first lien creditors are the focus of the discussions for now.""
Oct 03, 2014
""It's a company in a period of some distress," Thomas Ferguson, an analyst with Montpelier, Vermont-based KDP Investment Advisors Inc. said in a telephone interview. "Interest coverage is not great and leverage is significant.""