Latest news with #OvernightFinancing
News18
a day ago
- Business
- News18
Air India In Talks For $200 Million Bank Loan to Fund Boeing 777 Purchase: Report
AI Fleet Services IFSC Ltd. a GIFT City-registered subsidiary of Air India, is the borrower of the loan, said the Bloomberg report. The group, which operates two airline brands — the full-service carrier Air India and the low-cost alternative Air India Express — purchases and leases aircraft via this entity. The purchase of aircraft takes place as Air India struggles to expand its fleet due to supply chain constraints impacting deliveries and its ability to get planes from the open market. Air India is looking to purchase six Boeing 777 aircraft that it is currently operating, Bloomberg reported citing people familiar with the matter. According to the report, some of these planes are 11 to 13 years old and are primarily being used on India-US routes, as confirmed by data from flight tracking platform Flightradar24. The move is part of the airline's strategy to maintain a stable fleet while it awaits the delivery of new aircraft, Bloomberg noted. These purchases are aimed at bridging the gap until fresh deliveries begin. People aware of the discussions told Bloomberg that the pricing for the proposed loan to fund the acquisition may be tied to the Secured Overnight Financing Rate (SOFR), a key global benchmark. Air India was purchased by the Tata Group in 2022. The Tata Group acquired Air India from the Indian government after winning a bidding process.
Mint
4 days ago
- Business
- Mint
DOJ Probing for Collusion in CLO Market During Libor Transition
The US Justice Department is conducting a criminal antitrust investigation into whether some investors in collateralized loan obligations colluded to bolster their positions as markets transitioned away from the scandal-plagued London interbank offer rate in early 2023, according to people familiar with the matter. Antitrust prosecutors in New York have sent subpoenas to financial firms as they seek to determine whether investors with an equity stake in the $1.3 trillion CLO market illegally coordinated as the underlying buyout debt was repriced, said the people, who asked not to be identified discussing the confidential probe. The investigation was opened about a year-and-a-half ago, the people said. A spokesperson for the Justice Department declined to comment. In the last few months of 2022 and early 2023 — shortly before the final phaseout of Libor — a flurry of companies in the leveraged loan market rushed to switch the benchmarks on their debt. Often, they tried to exclude an adjustment that was meant to compensate investors for the fact that the Secured Overnight Financing Rate — the debt's new benchmark — consistently printed below Libor. CLO managers, who repackage leveraged loans into bonds of varying risk and size, saw how some companies were about to reap benefits during that transition if that additional spread wasn't added, as it lowered the interest the companies paid. The most junior holders of the bonds they issued, also known as equity, stood to lose millions as they get paid last after every other investor in the bond has received their payments. Communications between CLO equity holders near the transition deadline is part of what is being investigated by prosecutors, said the people familiar with the matter. CLO equity investors were particularly exposed during the transition because their returns depend on the excess cash flows from underlying loans after higher-ranking CLO debt holders have been paid, and because of the significant leverage built into the structures. Smaller interest payments mean there's less left over for them to pocket. Antitrust law bars competitors from colluding for economic gain. Because each CLO investor is a separate entity, it could potentially be illegal for them to agree with each other on the financial terms for an investment. In criminal collusion or price-fixing cases, prosecutors must show evidence of an agreement, but don't need to provide proof of economic harm, potentially giving them an advantage if a case goes to trial. Still, if the government ultimately brings charges, it would need to convince a jury the actions came from collusion instead of firms reaching the same decision independently. This article was generated from an automated news agency feed without modifications to text.
Business Wire
14-07-2025
- Business
- Business Wire
Consensus Cloud Solutions Announces Closing of New Credit Facility
LOS ANGELES--(BUSINESS WIRE)-- Consensus Cloud Solutions, Inc. (NASDAQ: CCSI), (the 'Company') has entered into a Credit Agreement (the 'Credit Agreement') with certain lenders party (the 'Lenders') and U.S. Bank National Association, as agent on July 9, 2025. Pursuant to the Credit Agreement, the Lenders have provided the Company with a senior secured revolving credit facility of $75.0 million and a senior secured delayed-draw term loan facility of $150.0 million (collectively, the 'Credit Facility'). The final maturity of the Credit Facility will occur on July 10, 2028, subject to limited customary accelerators. As of July 14, 2025, no amount had been drawn down on the Credit Facility. The interest rate applicable to the loans made under the Credit Facility are, at the Company's option, equal to either a base rate or the Secured Overnight Financing Rate ('SOFR') plus an applicable margin based on the total net leverage ratio (0.50%-1.25% in the case of base rate loans and 1.50%-2.25% in the case of SOFR loans. The Company expects to draw funds in the last fiscal quarter of 2025 and based on its current leverage would expect an interest rate of SOFR plus an applicable margin of 1.75%. In connection with entering into the Credit Facility, the Company's existing senior secured revolving credit facility agented by U.S. Bank National Association (as successor-in-interest to MUFG Bank, N.A.) was retired without a balance. Further details are provided on the Form 8-K filed by Company on July 14, 2025. About Consensus Cloud Solutions Consensus Cloud Solutions, Inc. (NASDAQ-CCSI) is a global leader in digital cloud fax technology. With over 25 years of success with eFax at its core, the company has evolved to be a trusted provider of interoperability solutions, leveraging artificial intelligence and secure data exchange to transform digital information, automate critical workflows, and maximize operational efficiencies. Consensus maintains industry- leading compliance standards, making it a preferred partner for heavily regulated industries including healthcare, the public sector, financial services, insurance, real estate, and manufacturing. For more information about Consensus, visit
Yahoo
14-07-2025
- Business
- Yahoo
Consensus Cloud Solutions Announces Closing of New Credit Facility
LOS ANGELES, July 14, 2025--(BUSINESS WIRE)--Consensus Cloud Solutions, Inc. (NASDAQ: CCSI), (the "Company") has entered into a Credit Agreement (the "Credit Agreement") with certain lenders party (the "Lenders") and U.S. Bank National Association, as agent on July 9, 2025. Pursuant to the Credit Agreement, the Lenders have provided the Company with a senior secured revolving credit facility of $75.0 million and a senior secured delayed-draw term loan facility of $150.0 million (collectively, the "Credit Facility"). The final maturity of the Credit Facility will occur on July 10, 2028, subject to limited customary accelerators. As of July 14, 2025, no amount had been drawn down on the Credit Facility. The interest rate applicable to the loans made under the Credit Facility are, at the Company's option, equal to either a base rate or the Secured Overnight Financing Rate ("SOFR") plus an applicable margin based on the total net leverage ratio (0.50%-1.25% in the case of base rate loans and 1.50%-2.25% in the case of SOFR loans. The Company expects to draw funds in the last fiscal quarter of 2025 and based on its current leverage would expect an interest rate of SOFR plus an applicable margin of 1.75%. In connection with entering into the Credit Facility, the Company's existing senior secured revolving credit facility agented by U.S. Bank National Association (as successor-in-interest to MUFG Bank, N.A.) was retired without a balance. Further details are provided on the Form 8-K filed by Company on July 14, 2025. About Consensus Cloud Solutions Consensus Cloud Solutions, Inc. (NASDAQ-CCSI) is a global leader in digital cloud fax technology. With over 25 years of success with eFax at its core, the company has evolved to be a trusted provider of interoperability solutions, leveraging artificial intelligence and secure data exchange to transform digital information, automate critical workflows, and maximize operational efficiencies. Consensus maintains industry- leading compliance standards, making it a preferred partner for heavily regulated industries including healthcare, the public sector, financial services, insurance, real estate, and manufacturing. For more information about Consensus, visit View source version on Contacts Laura Hinsoninvestor@ 844-211-1711Consensus Cloud Solutions, Inc. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
26-06-2025
- Business
- Yahoo
Circle Is Up About 700% Since Its IPO. Should You Still Buy the Stock at a Monster Valuation?
Circle is the stablecoin issuer of USDC, one of the largest digital assets in the world. Circle's IPO in early June was met with booming success from the market. Stablecoins are a major source of innovation in the payments space. 10 stocks we like better than Circle Internet Group › Since going public on June 5, it's been pedal to the metal for the stablecoin issuer Circle (NYSE: CRCL), which has seen it's stock absolutely explode in just a few short weeks. The company priced shares at $31 per share, or a roughly $6.8 billion valuation. However, once hitting the open market, shares of Circle jumped to $69 and at one point topped $103 per share. As of June 24, shares of Circle had jumped to $248 or a nearly $56 billion market cap, up 700%. After such an incredible run, can you still buy the stock? Circle is the issuer of the stablecoin USDC (CRYPTO: USDC), which is the seventh largest digital asset with a $62 billion market cap. Stablecoins are digital assets pegged to a currency or commodity; USDC is pegged 1-for-1 to the U.S. dollar. Circle also has other products, like EURC, a stablecoin pegged 1-to-1 to the euro. The idea of stablecoins is to take advantage of the ingenious technology behind the blockchain while removing the volatility typically associated with cryptocurrencies. Using digital assets, people are able to transfer money seamlessly to anyone with internet access, even if they don't have a bank account. This makes stablecoins very useful for cross-border payments and for potentially helping the underbanked population. Circle supports wireless transactions for minting and redeeming USDC in more than 185 different countries. The company's business model and strategy are fairly straightforward. Circle wants to increase the popularity of USDC and EURC and the general use of stablecoins. It plans to partner with financial institutions to provide as many on-and-off ramps as possible, where people can easily transfer between fiat currencies and stablecoins. Recently, Circle took a big step in that direction by announcing a strategic partnership with Fiserv, one of the major players providing core processing capabilities for thousands of banks all over the world. The partnership aims "to jointly explore and develop stablecoin-enabled solutions for financial institutions and merchants within the Fiserv ecosystem." Circle makes money through the dollar reserves it holds for each stablecoin, on which it earns a yield. The yield it earns has historically been a small discount to the Secured Overnight Financing Rate (SOFR), or the rate at which banks lend very short term to each other. The company will increase revenue is by increasing reserves, which grow through more use of its stablecoins. Circle's revenue exploded from $772 million in 2022 to roughly $1.45 billion in 2023. In 2024, revenue grew at a slower rate to $1.68 billion. Circle generated nearly $156 million in profit in 2024. In the first quarter of 2025, Circle reported close to $579 million of revenue and a profit of nearly $65 million. Recently, Circle received good news when the U.S. Senate passed a bill that would establish a formal regulatory framework for stablecoins. In the world of digital assets, anything that can provide regulatory clarity tends to be viewed positively. Furthermore, Seaport Global analyst Jeff Cantwell also initiated coverage on Circle and assigned the stock a buy rating. "On the back of an improving regulatory climate, we expect adoption globally of stablecoins such as USDC, Circle's flagship product, grows rapidly from here -- we see the stablecoin 'market cap' potentially reaching $2T over the longer-term, from roughly $260B today," Cantwell wrote. He expects the total stablecoin market to reach $500 billion and that Circle's revenue can grow 25% to 30% per year. I find stablecoins to be intriguing. They seem to be growing in popularity, and Circle's partnership with Fiserv could open up the door to thousands of new financial institutions. However, the company's problem is that it now trades at a monster valuation. If you annualize Circle's first-quarter numbers, that means the stock currently trades at roughly 215 times Circle's 2025 earnings and 24 times 2025 revenue. Investors should be aware that it could take time for traditional banks to adopt any kind of stablecoin product. Traditional banks are conservative, and instant payments still present challenges, like how to deal with fraud. Furthermore, if the Federal Reserve lowers interest rates, it could cut into Circle's revenue because SOFR is influenced by interest rates. In the fourth quarter of 2024, Circle's rate on its reserves was about 4.5%, but that rate was as low as 0.14% in the first quarter of 2022. Stablecoins may very well be the future, but Circle's huge run means investors are already assuming enormous growth in the stablecoin market. If this turns out not to be the case or competitors take market share from USDC, Circle's stock could take a hit. At this valuation, I'm not ready to buy just yet. I recommend interested investors practice dollar-cost averaging, which will smooth out their cost basis over time. Before you buy stock in Circle Internet Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Circle Internet Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $689,813!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $906,556!* Now, it's worth noting Stock Advisor's total average return is 809% — a market-crushing outperformance compared to 175% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Circle Is Up About 700% Since Its IPO. Should You Still Buy the Stock at a Monster Valuation? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
