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Loan Market Commentary 01/05/2010

The loan market was on fire yet again today with loans jumping a point or two. Traders were going out into the market this morning with elevated levels are they were finding buyers. A lot of people were flat going into the New Year and had a lot of cash sitting idle. With people now willing to take on risk, buyers have been plentiful and have caused a nice technical rally. Even in the afternoon traders continued to get lifted. There is a ton of positive sentiment in the market and the prices were reflective of that. The LCDX13 last went out at around 103.7/104.
 
  • Sorenson Communications is selling $735 million in senior secured notes due 2015, according to IFR, a Thomson Reuters service. Proceeds will be used to repay the company's $320 million second-lien term loan and $258 million PIK holdco loan. In addition, the company will make a $179 million equity distribution.
  • Level 3 Communications Inc today said subsidiary Level 3 Financing plans to sell $640 million in senior notes due 2018 in order to fund its tender offer to purchase for cash its $550 million in 12.25% senior notes due 2013, according to a company statement. The notes will be guaranteed on an unsubordinated and unsecured basis by Level 3 Communications Inc. Bank of America Merrill Lynch, Citi and Morgan Stanley are leading the deal as joint bookrunners. Pricing is expected today following an investor call at 11am, said IFR, a Thomson Reuters service.
  • Del Monte Corp will meet with potential lenders on Thursday for a new $1.1 billion credit facility, according to an SEC filing. The new, five-year loan is expected to consist of $600 million in term loans and a $500 million revolver. The deal is expected to close in late January or early February.
  • JP Morgan, Bank of America, Barclays and Deutsche Bank are launching Friday an $800 million exit financing package for Six Flags Inc, sources said. According to court filings, the deal consists of a $150 million, five-year revolver and a $650 million, six-year term loan. Price talk outlined in the filing is LIB+425 with a 2% Libor floor. The revolver carries a 150bp commitment fee. The company will also issue $450 million in common stock as part of its reorganization plan.
  • Ford Motor Co's TLB rose more than a point to 94.5-95 after the auto maker posted a 33% rise in December U.S. auto sales, sources said. The TLB-2 is currently quoted 92.5-93.5.