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   March 9, 2014 @ 12:57 AM EST
FRIDAY'S REPORTS (3/7/2014)
Investment Grade
General Electric  (with Analyst's Data Sheet) Issuers continue to flood the corporate bond market. Yesterday General Electric sold $3.0 billion of parent-level securities due in 2024 ($750 million)...
Revise And Resubmit by Kathleen Shanley, CFA
Consolidated Edison Company of New York  (with Analyst's Data Sheet) Earlier this week, Consolidated Edison of New York issued $850 million of 30-year debentures. We discuss the recent rate...
Part One Of Two by Philip C. Adams, CFA
High Yield
Iron Mountain  (with Analyst's Data Sheet) Iron Mountain's (IRM) fourth quarter adjusted EBITDA, excluding charges, was in line with consensus expectations and guidance. Driving results were steady...
Still Waiting by Evan Mann, CFA
FRIDAY'S COMMENTS (3/7/2014)
11:49am Caesar's Entertainment Caesars announced the sale of four casino assets to an affiliate (CGP) in what looks...
Asset Sale by Kim Noland
Caesars announced the sale of four casino assets to an affiliate (CGP) in what looks like another asset shuffle that disadvantages the unsecured and second lien opco bonds. While the transaction will improve near term liquidity at the opco--price is $1.8 billion after netting capex opco will be required to invest prior to closing-- it likely will increase the debt leverage ratio at the opco above its already unsustainable 15x. Further, management was not precise about the use of proceeds except to say some bank debt would be repaid and refused to give pro forma information about the opco post-sale. Even if all the proceeds were used to repay first lien debt, the asset sale looks negative for opco asset value because the sale involves mostly Las Vegas properties where the market is recovering, leaving the opco weighted toward Atlantic City which continues its decline. The move occasioned negative ratings action by two major agencies (the debt is already rated triple C) as a distressed debt exchange looks more likely. In the meantime, the sale will help the company continue to pay bond coupons and marginally benefits near term maturities of small issues. In connection with the announcement the company also gave limited information about the fourth quarter which will be expanded when it reports earnings on March 11. We will have more details on the asset sale transaction and an update on financial results at that time.
THURSDAY'S REPORTS (3/6/2014)
Investment Grade
Vodafone Group Plc  (with Analyst's Data Sheet) We noted in yesterday's report on AT&T that a deal with Vodafone was off the table until at least late July, as dictated by British law. But we also...
Can't Stand Still by Dave Novosel, CFA
Best Buy  (with Analyst's Data Sheet) Best Buy's miserable holiday season and fourth quarter look slightly less miserable in the context of a declining consumer electronics industry and even worse...
Lone Survivor by Carol Levenson, CFA
High Yield
Graphic Packaging Holding Co.  (with Analyst's Data Sheet) Graphic Packaging pleased investors with a good year end earnings report and soon followed with additional positive news. Graphic is...
European Expansion  by Kim Noland
Navistar International  (with Analyst's Data Sheet) The market was blindsided yesterday when Navistar reported a much larger $248 million net loss for its fiscal first quarter as of January 31...
Dear Mr. Fantasy by Vicki Bryan
Weatherford 2/26 
Dean 2/11 
Vulcan 2/11 
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Rigorous Analysis
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Every report is one page, and concludes with an actionable investment recommendation.
Mar 6, 2014 | Philadelphia Inquirer
CL on Staples to cut 225 locations; Will Best Buy be the store survivor? Q - "'Best Buy is scrambling to avoid the fate of the Electronics Stores of Christmas Past such as Circuit City, The Wiz, and Tweeter,' as well as 'fast fading Radio Shack.'"
Mar 6, 2014 | Bloomberg
EM on Ullman Proves Retailer Bond Messiah in Revival Q - "There's comfort that liquidity shouldn't be an issue for either one of them."
Mar 6, 2014 | Bloomberg
EM on Realogy Seen Squeezing Bankers Over Loan Rate Q - "Even with a single-digit growth pace, the housing recovery tends to last several years. Last year, their growth was volume driven and this year will be more price driven."
Mar 5, 2014 | Reuters
DN on AT&T taps bond market for first time this year Q - "The decision means that the company cannot acquire Vodafone over the next five months unless it obtains the approval of the Vodafone board."
Mar 5, 2014 | Dayton Daily News
VB on Navistar loses $248M, looks to regain market share Q - "Sales were down across the board in all truck and engine categories when, as we projected, Navistar failed to convert its growing backlog anywhere near the pace of previous order growth."
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