I keep seeing CCC-rated new issue PIK deals to fund sponsor dividends.I hate to say it, but the author of this piece is spot on:http://www.distressed-debt-investing.com/2012/09/an-open-let..."Dear CFO -I hope this letter finds you well. My name is Hunter and I started and currently run a collection of sites focused on credit - specifically distressed and speculative credit. Our readers come from across the world and include every major U.S investment bank and many hedge funds, law firms, and asset managers in the country. I've spent the majority of my career working in leverage finance as an investor allocating and providing capital to sub-investment grade issuers and companies in bankruptcy.You might be wondering why I am writing to you today. As an active participant in both the primary and secondary credit markets, I spend a significant amount of time gauging the risk appetite of investors that provide financing in the U.S. bond and bank debt markets, up and down the risk and ratings spectrum. Simply put: You are doing your investors and your company a disservice if you are not tapping the credit markets as soon as possible. If you are not planning a new bond or bank debt offering, call your relationship manager at your preferred investment bank of choice and put the wheels in motion. Whether it be refinancing your capital structure, financing an acquisition, dividend, or share repurchase, or simply stuffing the war chest for a rainy day, I behoove you to issue into this market."
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