So far, 2010 has been great for the loan market, which was on fire again today. Traders levels continue to be lifted as buyers show a strong appetite for paper. A $195mm cash loan OWIC came out late in the day yesterday and had bids due today at noon. This is the first one that we have seen in a while and shows that we are really in a buyers market. However, very little of the OWIC traded since many sellers submitted high offer, which makes sense given the markets performance this week. The OWIC contained a lot of middle market names and blocks ranged from $2 to $5 million. The LCDX13 broke into the 104 context today and was shown last at 104.0625/104.3125. Volumes were strong in both the cash and synthetic markets and that trend will likely continue.
- Standard & Poor's Ratings Services said today that it lowered its long-term corporate credit ratings on U.K.-headquartered HIT Entertainment Ltd. and related entities to 'CC' from 'CCC+'. The outlook is negative.
- Energy Future Holdings Corp. (fka TXU Corp) announced today that it plans to raise $300 million in senior secured notes due 2020 through a private offering with proceeds going to fund corporate activities. The notes will be non-callable for five years and will have an equity claw of 35% in year three.
- Ply Gem Industries Inc announced that it has commenced a sale of a $110 million senior subordinated note issue. The notes, due 2014, will be used to refinance roughly $102.7 million of the company's 9% senior subordinated notes due 2012.
- Del Monte Corp will be holding a bank meeting tomorrow in San Francisco for its new $1.1 billion, five-year two-tranche financing, sources said. Bank of America Merrill Lynch, Barclays Capital and BMO Capital Markets are the arrangers. The deal consists of a $500 million revolving credit facility with a 50bp undrawn fee and a $600 million term loan A. Margin opens at LIB+300 and will be based on a leverage ratio grid after six months.
- Biomet Inc.'s TLB rose about 1.25 points on the back of better-than-expected 2Q10 financial results. The loan rose to 98-98.5 from 96.75-97.75 before the results were announced, sources said. The company said net sales increased 8% in the quarter to $696 million worldwide. Adjusted EBITDA rose 7% to $265 million.