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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.