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  • 12/14/2009 Loan Market Wrap
    The loan market started the last full trading week of the year surprisingly firm. Loans were bid up 25 to 50 bps today, but on relatively light volume. The LCDX was the big winner today firming 65 bps to 100.1/100.4. This is a pretty unique moment for the LCDX. That last time the LCDX traded this high was 10/12/2007. However, we are not comparing apples to apples here. The LCDX was on the Series 8 back in 2007, and that version carried a LIB+150 coupon; the current version of the LCDX13 carries a LIB+500 coupon, so while it is significant that the LCDX has hit par, it does not imply that we are out of the woods. The LCDX has been pushed higher due to a short covering as the market continues to be positive and bid higher. TASC’s new loan that broke for trading for the day was the big highlight and captures most of the attention. Off the run paper continues to be active and better bid.
     
    • LyondellBasell's CAM facility traded down today on news that a bankruptcy judge will hear arguments from unsecured lenders about the validity of a recently announced settlement, sources said. Meanwhile, the issuer's rollup facility traded higher on the back of the company's reorganization plan. The rollup traded up about four points to 102 bid on news that lenders will receive a new 11% note upon emergence from bankruptcy, sources said
    • Warner Chilcott is seeking an amendment to its senior secured credit to allow the company to use proceeds under its $350 million delayed-draw term loan to redeem its 8.75% notes, according to a company statement.
    • MGM Mirage is seeking an amendment on its credit facility that will allow the company to indemnify title insurers who issue title policies to buyers of residences at CityCenter, sources said. The amendment request was sent out last Friday asking for consents by this Friday.
    • TRW Automotive Inc has tweaked its amend and extend facility by changing the tranche sizes and adding another tier to the pricing grid, sources said. The extended term loan A-2 is now increased to $225 million from $220 million, while the extended term loan B-3 is downsized to $175 million from $200 million.
    • Under the terms of its credit agreement, Clear Channel Communications Inc may not be required to use proceeds from Clear Channel Outdoor Holdings' $750 million note sale to repay bank debt, said Chris Chaice, an analyst at Covenant Review, an independent credit research firm, though lenders may have the basis to challenge.
    • TASC Inc's new $390 million TLB broke for trading this morning, trading 100.5-100.875 out of the box, sources said. The $200 million TLA is currently quoted 100.375-100.75.
    Dec 14 5:29 PM | Link | Comment!
  • 12/11/2009 Loan Market Wrap
    The loan market finished the week strong with bids continuing to firm another 25 to 50 bps. Over the course of the week quite a few flows names were up a couple points. Some notable movers were TXU, Neiman Marcus, Visteon, HCA and Community Health. Volumes were about the same as yesterday and there was a good mix of buyers and sellers. The LCDX13 was flat on the day and went out last at 99/99.30.
     
    • Clear Channel Worldwide, an indirect and wholly owned subsidiary of Clear Channel Outdoor Holdings Inc, is offering $750 million in senior notes, the company announced in a statement. Clear Channel Worldwide intends to loan proceeds from the note sale to CCOI, in order to repay approximately $730 million of indebtedness owed to parent company Clear Channel Communications Inc, according to the statement.
    • Standard & Poor's late yesterday raised its corporate credit rating on Dollar General Corp to 'BB-' from 'B+' after the company completed its IPO and used the bulk of the proceeds to redeem about $382 million in existing senior subordinated and senior notes. The upgrade is based on improving credit protection measures because of debt reduction as well as strong operating performance, with pro forma total debt to EBITDA declining to about 4.1 times for the 12 months ended Oct. 30, S&P said.
    • Standard & Poor's today lowered its ratings on 76 tranches across 15 U.S. collateralized loan obligations and removed 75 tranches from CreditWatch with negative implications. The affected tranches have a total issuance amount of approximately $5.5 billion.
    • Starwood Hotels & Resorts Worldwide Inc yesterday sold a $166 million note securitized by $200 million in timeshare mortgages, the company said in a statement. Starwood expects the securitization will result in a pre-tax gain of over $15 million. In April, Starwood amended its $1.875 billion revolver and $1 billion term loan B.
    Dec 11 5:25 PM | Link | Comment!
  • 12/10/2009 Loan Market Wrap
    The loan market was quiet today, however bids were much firmer; we saw most of the flow names up anywhere from a quarter to a half a point. Many names that have recently been in the news continued to firm and were bid up over a point; those included Tribune’s term loan, 50.3125/51.9375 (+1.6875) post its reorganization extension and Neiman Marcus’ term loan, 87.2083/87.8333 (+1.125) after issueing strong numbers. TXU’s term loan was on fire, firming a point and a half to 77.6944/78.5278 (+1.2444). Many CLO’s continue to cherry pick some of the off-the-run and distressed credits, so we saw bids in that area of the market up as well. New issues were hot today with two new deals breaking in the secondary market. In the morning we had Booz-Allen’s new term loan break for trading today at 100/100.5 after being issued at 99 and Hanesbrands’ extended term loan broke for trading above its issue price at 100.5/101 early this afternoon. The LCDX was active today and traded up into the 99 context today. The LCDX last went out at 99/99.3, (+.35).  
     
    • Visteon Corp’s loan rose a couple of points today to reach par after the company yesterday filed a motion on its bankruptcy docket seeking to extend the period to file and solicit votes for its bankruptcy plan, sources said. The loan was quoted today at 100-100.5.
    • Citadel Broadcasting Corp’s loans have fallen about 1.5 points since Tuesday. The TLA is currently bid at 72.25 and the TLB is bid at 72.25, according to a trader. The loans were quoted Tuesday at 74-75 before a lenders call.
    • Bank loan mutual funds saw $44.9 million in inflows the week ended Dec. 10, according to Lipper FMI. Last week, $97.8 million flowed into bank loan mutual funds. Year to date, almost $4.5 billion has flowed into bank loan mutual funds.
    Dec 10 5:35 PM | Link | Comment!
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