Tom Newberry Said to Leave Credit Suisse Leveraged Finance Markets Group
Tom Newberry, global head of leveraged finance capital markets at Credit Suisse Group AG (CSGN), is leaving the bank, the company said today in a memo to employees.
David Miller will be the new head of global leveraged finance capital markets and underwriting and will report to Phil DeSantis and Eraj Shirvani, co-heads of global credit products, according to the memo. Newberry, 49, joined Credit Suisse’s predecessor Donaldson, Lufkin & Jenrette in 1996.
The changes at the third largest underwriter of U.S. leveraged loans comes as sovereign-debt concerns and a weak U.S. economy have brought prices of the high-yield, high-risk debt under pressure. The bank has agreed to underwrite Apax Partners LLP’s $6.3 billion takeover of Kinetic Concepts Inc. (KCI), the biggest leveraged buyout since Lehman Brothers Holding Inc.’s collapse in 2008.
Credit Suisse has become the third largest arranger of U.S. leveraged loans this year, up from fourth last year, according to data compiled by Bloomberg. Year-to-date, Credit Suisse has arranged $30.2 billion of the debt, for a 7.7 percent market share, up from $12.8 billion and 6.4 percent in the similar period last year, the data show.
For both time periods Bank of America Corp. and JPMorgan Chase & Co. were the largest underwriters of U.S. leveraged loans, according to the data.
The Standard & Poor’s Leveraged Loan 100 Index, which tracks the 100 largest dollar-denominated first-lien leveraged loans, fell 0.94 cent in June -- the largest monthly fall since May 2010 -- and the index has dropped 1.81 cents since Feb. 14 when it hit a high for the year.
Bank of America, Credit Suisse and Morgan Stanley are providing $4.95 billion of debt to back Apax’s buyout of Kinetic, the San Antonio-based company said in a July 14 regulatory filing.
Credit Suisse reported a 45 percent drop in first-quarter profit on lower earnings at the investment bank and a charge related to its debt, the firm said April 27. The bank will announce second-quarter earnings July 28.
Miller joined Credit Suisse in 1997 and most recently was co-head of the syndicated loan group, Americas and co-head of leveraged finance capital markets, Americas.
Separately, Brent Patry is the sole head of leveraged finance capital markets, Americas, reporting to Miller, according to the memo. Bob Franz is the head of credit trading, Americas, reporting to DeSantis and Shirvani. Franz and Miller will continue as co-heads of syndicated loans, Americas.
Katherine Herring, a New York-based spokeswoman for Credit Suisse, declined to comment.
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