| US banking group agrees on debt securities fund
Bankers from Citigroup Inc, JPMorgan Chase & Co and Bank of America Corp have agreed on how to structure a multibillion-dollar fund to buy distressed debt securities almost a month after they announced plans for it, a source familiar with the situation said. The bankers met on Friday to hammer out the details of how the fund will work, the source said, who asked not to be named because the details have not been publicly disclosed. Those details include how much specific participating banks will contribute. Before the plan takes effect, it must be approved by the banks' senior corporate officers, tax attorneys and ratings agencies. Meanwhile, some investors and industry watchers say the fund will only help the banks involved. The fund was the brainchild of Citigroup, which sees potential troubles in its structured investment vehicles (SIVs).
Credit unions get prepaid card readers
PSCU Financial Services said it would offer free prepaid card readers to all of its participating member-owner credit unions. The card readers will help automate the purchase of both gift and reloadable cards, according to a release from PSCU, a St. Petersburg-based credit union service organization. The card readers speed transaction time by allowing information to be entered in seconds at the teller window, while also eliminating manual keying errors, the release said. PSCU also will provide displays, packaging and promotional materials, designed to help credit unions earn traction among their members for new products, David Serlo, president and chief executive of PSCU, said in the release. PSCU serves more than 1,100 financial institutions nationwide and is owned by more than 500 member credit unions.
Big banks agree on debt-rescue fund plan
NEW YORK -- Bankers from Citigroup Inc., JPMorgan Chase & Co. and Bank of America Corp. have agreed on how to structure a multibillion-dollar fund to buy distressed debt securities almost a month after they announced plans for it, according to a person familiar with the situation. The bankers met Friday to work out the details of how the fund will operate, said the person, who asked not to be named because the details have not been publicly disclosed. Before the plan takes effect, it must be approved by the banks' senior corporate officers, tax attorneys and ratings agencies. Meanwhile, some investors and industry watchers say the fund will help only the banks involved. The fund was the brainchild of Citigroup, which sees potential troubles in its structured investment vehicles, known as SIVs.
Fitch Affirms Corn Products International's IDR at 'BBB'; Outlook Stable
--Senior unsecured credit facility at 'BBB'. The company had $620 million of debt at Sept. 30, 2007. The Rating Outlook is Stable. The ratings are supported by the company's competitive market position, geographic diversification and comprehensive product mix within the wet-corn milling industry. Corn Products' conservative financial policies and financial flexibility are also reflected in the ratings. The price of corn, the company's main raw material cost, may fluctuate based on factors such as changes in weather conditions and plantings, consumption growth and government agricultural policies. However, Corn Products' balanced geographic presence reduces operating earnings volatility in any one region. While the company does not participate in ethanol production, Corn Products benefits from the tightening of capacity utilization for the entire corn complex.
Quebecor World to sell new stock amid debt refinancing
MONTREAL – Quebecor World Inc. (TSX: IQW) says it will sell up to $778 million worth of additional shares and debt securities to investors and to its controlling shareholder, Quebecor Inc. (TSX: QBR.B), in a refinancing of its debt and credit facilities. The printing company, which historically forms the core of the Quebecor business empire, announced Tuesday that it will sell up to $213 million worth of its subordinate voting shares to the public through a syndicate of underwriters. In addition, Quebecor Inc. will pay about $65 million for a combination of multiple voting shares and subordinate voting shares in order for the parent company to maintain the level of its current economic interest in Quebecor World. The debt portion of the offering will be a private placement of $400 million of new unsecured notes and $100 million of unsecured convertible debentures.
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