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

Loan Market Commentary 01/13/2010

The loan market was flat with some names firming a quarter after investors started cherry picking deals that depreciated in yesterdays sell off. New issues in the high yield market have taken center stage. Loan investors expect to see loan pay downs to continue and drive bids higher. A $100 million BWIC came to market this afternoon that contained mostly off-the-run names. Some of the more attractive pieces of paper included Neimen Marcus and Michael’s Stores term loans. The LCDX 13 fell an eighth this morning but came back up at the end of the day at 104 1/8 – 104 5/16.
 
  • Burlington Coat Factory announced second quarter results today and adjusted EBITDA increased to $111.5 million verses $110.2 million last year. SG&A as a percentage of sales improved 30 bps verses last year. Debt net of cash and investments improved $187.6 million verses last year.
  • Brocade Communications' $300 million, eight-year notes are talked at 6.75%-7% with a 0-2 points OID, while its $300 million, 10-year notes are talked at 7%-7.25% with a 0-2 points OID, according to IFR, a Thomson Reuters Service.
  • Pricing on Big West Oil LLC's $360 million, five-year term loan B is firming at an OID of 97 and a Libor floor of 2.5% after the deal was oversubscribed, sources said. Earlier, the term loan was being talked at an OID of 96 along with a 3% Libor floor. Pricing is LIB+950. Bank of America Merrill Lynch leads the loan, which will have a first-lien claim on the borrower's material real property and fixed assets including its refinery. The loan also will have a second-lien claim on working capital assets.
  • Targa Resources Partners LP announced today it has priced an underwritten public offering of 5.5 million common units representing limited partner interests at $23.14 per common unit. The offering is expected to close on or about Jan. 19. The partnership intends to use the net proceeds from the offering for general partnership purposes, which may include reducing borrowings under its senior secured credit facility and redeeming or repurchasing some of its outstanding notes.
  • Harman International Industries Inc said today that it has entered into an amendment to the indenture for its convertible senior notes due 2012. Effective January 12, 2010 note holders have waived compliance of the incurrence of debt covenant for the limited purpose of permitting Harman to incur debt under its existing revolving credit facility.
  • Following Constellation Brands Inc's proposed amendment and extension of its senior secured credit facilities, Standard & Poor's yesterday affirmed Constellation Brands' ratings, including its 'BB' corporate credit rating. The outlook is positive. The company is proposing to extend its revolving credit facility two years to June 2013, but the revolver size will be reduced to $650 million during the extension period. Constellation Brands will also extend the maturity of $300 million of its term loan B by two years to June 2015.
  • Moody's yesterday assigned a B3 rating to Jarden Corp's proposed $400 million senior subordinated notes and affirmed all of Jarden's other ratings. The outlook remains positive, it said. Proceeds are to repay a portion of the secured term loan and for general corporate purposes. On December 16, 2009, Jarden announced it made a binding offer to acquire the Paris, France-based Mapa Spontex Baby and Home Care businesses from Total S.A. for a purchase price of approximately $500 million less any indebtedness assumed by Jarden.