NYT: The Debt Comes Due In A Big Way Starting In 2012

An avalanche is brewing in 2012 and beyond if companies don’t get out in front of this.

Kevin Cassidy, Senior Credit Officer, Moody’s

The companies have nearly two years to push out the 2012 maturity wall.

Martin Fridson, veteran high yield expert

Interesting front page NYT article yesterday on the avalanche of debt coming due in 2012 and after: “Corporate Debt Coming Due May Squeeze Credit”, Nelson Schwartz, The New York Times, March 16, A1.

From $21 billion in junk bond maturities in 2010, the number jumps to $155 billion in 2012, $212 billion in 2013 and $338 billion in 2014.  That’s because many junk bonds were issued in 2005-2007 at 5 to 7 year maturities. 

For example, HCA, which was taken private in an LBO by KKR and Bain in 2006, has $13.3 billion in debt coming due between 2012 and 2014.  TXU, also taken private by KKR, has $20.9 billion in debt coming due over the same period.

Over the same time period, many commercial mortgage backed securities will be maturing as well.  $59.7 billion in Commercial MBS come due in 2012.


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