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  • 12/09/2009 Loan Market Wrap
    The loan market felt better today, volumes picked up a little bit as well. Most of the trading however was driven by news. There were a lot of names quoted better today, but that is due mostly to year-end clean-up by many of the trading desks. Investors are still fixated with the new issue market as the forward calendar continues to grow. In the primary market, Pinnacle Foods’ new loan syndicated today and was a hot item today. The company’s term loan shot up to 101.375/101.625 as investors scrambled to get involved. The loan sold at an OID of 99. This is a very good indication of how strong the demand is for new issue paper; it says a lot when a covenant-lite term loan is priced above par. Remember last year when no one would touch a covenant-lite term loan with a ten foot pole; now people are desperate to buy. We are still waiting to hear how well the BWIC’s announced yesterday went. Remember the last BWIC that hit the market was only 80% subscribed, and that one was composed of mostly on the run credits. In the synthetic market, both the LCDX13 and HYCDX12 were flat on the day at 98.62/98.85 and 95.125/95.3125.
    • Neiman Marcus’ TLB rose about 50bp to 87-87.75 after the company reported better-than-expected 1Q10 results, sources said. This morning, the company posted EBITDA of $130 million, a 6.7% decline from the year-earlier period. Sales in the quarter were $896 million, a 12% decline from the year-earlier period.
    • Clear Channel Communications’TLB has firmed this week following news reports the company is looking to sell $2.5 billion in high yield debt. The loan is currently wrapped around 80, up from the mid 70s at the beginning of the week, sources said. Earlier this week, The Wall Street Journal reported the company is looking to raise up to $2.5 billion in new bonds, a financing that could help prevent it from violating covenants on its secured debt.
    • American Axle & Manufacturing’s $400 million notes are talked in the 9.5% to 9.75% range, according to IFR, a Thomson Reuters service. Pricing is expected tomorrow. The company is selling $400 million senior secured first-lien notes due 2016 to repay bank debt.
    • Pinnacle Foods’ new $850 million covenant-lite term loan is trading in the 100.375-100.625 range after the facility broke for trading this afternoon, sources said. The loan was sold at 99. The spread on the new loan is LIB+500 with a 2.5% Libor floor. The term loan, along with a $25 million revolver, backs the company's acquisition of Birds Eye Foods Inc.
    Dec 09 4:47 PM | Link | Comment!
  • Pinnacle Foods new loan breaks above par
    Pinnacle Foods' new $850 million covenant-lite term loan is trading in the 100.375-100.625 range after the facility broke for trading this afternoon, sources said. The loan was sold at 99.
    Dec 09 2:52 PM | Link | Comment!
  • Yesterday's Trading Recap
    Yesterday was a quiet day in the secondary loan market. Everyone had their eyes on the primary market. The only things really traded were recently issued loans; those tend to track equities, which were down on the day. We saw newly issued credit down about a quarter point. BWIC activity was up, with a total of three being announced worth $56.5MM. The BWIC’s were made up of off the run credits, and some issues that are not actively traded in the secondary market. The LCDX13 was active and traded down 15 cents to 98.65/98.85.
    • Outdoor products manufacturer Blount Inc has secured a $167 million, two-tranche deal led by GE Capital, GE announced. The deal consists of a $60 million, two-year revolving credit facility and a $107 million term loan. The revolver is priced at LIB+500 while the loan is priced at LIB+350, according to sources. Proceeds amends and extends an existing $300 million deal from March 2006 which originally matures in March 2010.
    • Price talk on MEG Energy Corp's new $300 million TLD due 2016 is LIB+400 with a 98.5 OID and a 2% Libor floor, sources said. Price talk on the $150 million revolver due 2013 is LIB+400. The company is also looking to extend up to $763 million of its existing TLD by three years to 2016 at LIB+400 with a 60bp extension fee. An amendment fee of 15bp is on offer to existing lenders.
    • Targa Resources outlined price talk and pro forma leverage for the proposed $700 million credit ahead of today's bank meeting in a lenders presentation posted on it website this morning. According to the presentation, the proposed 4.5-year, $150 million revolver is talked at LIB+400-425 with a 75bp unused fee. The 6.5-year, $550 million TLB is also talked at LIB+400-425 with a 2% LIBOR floor.
    • Pinnacle Foods' existing TLB rose a point today on a relative-value reassessment after the company tightened the OID on its $850 million add-on term loan from 98 to 99, sources said. The existing TLB is currently 91.25-92.75, up from 90.25 bid yesterday.

    Tags: Loan Market
    Dec 09 10:41 AM | Link | 1 Comment
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