Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

11/15/2009 Loan Market Wrap

The loan market was a touch weaker today, according to many sell-side shops. It was observed that there were a lot of better sellers today. However, from our view, loans continue to perform and were better by an eighth to a quarter; flow names were better by about quarter to a half point. Volumes were very light compared to what we saw last week. The LCDX13 was down a quarter to 99.75/100. New issuance continues to dominate the interests of investors with Green Trees new term loan breaking for trading today. Also, CLO’s have grown a voice lately as managers have been actively pitching new CLO’s citing the recent run up in both the loan and high yield markets. I mean, when you can show 30-40% gains for 2009 why would you not try to pitch the idea. We need to create more demand so that we can address the great refinancing wall that is ahead of us, so I hope they are able to raise the funds.
  • Windstream Corp announced today plans to offer a $600 million add-on to its 7.875.% senior notes due 2017 in a private placement transaction, according to a company statement. The add-on notes are being talked in the 98.5 context, according to IFR, a Thomson Reuters service. Windstream expects to use proceeds from the offering to finance the cash portion of the purchase price of the previously announced acquisition of NuVox, Inc, as well as to repay outstanding indebtedness of NuVox.
  • Aircraft manufacturer Hawker Beechcraft's bond prices plummeted on Tuesday, a day after the company announced cancellations of orders that will slash its backlog by around $2.6 billion. The company announced that private jet company NetJets Inc, a unit of Berkshire Hathaway, cut orders for aircraft that were to be delivered over several years starting in 2011.
  • Huntsman Corp may increase its $415 million "stalking horse" bid for some of bankrupt Tronox Inc's assets as the possibility of an alternative plan threatens to spoil Huntsman's offer, according to media reports.
  • Green Tree Financial Corp's new $350 million term loan B is trading 95.5-96 after the issue broke for trading earlier today. Pricing on the loan was bumped up by 75bp to LIB+575, which took the OID from 96 to 95. A Libor floor of 2.25% applies. Green Tree Financial specializes in manufactured home loans. The company originates pools, sells and services manufactured home loans using a vehicle known in the industry as conditional sales contracts.