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Loan Market Commentary 02/04/2010

Well, all the Sovereign debt scares and Nassim Taleb’s comments saying that It’s “a no brainer” to sell short Treasuries and that “Every single human being should have that trade,” got a lot of people riled up today and pushed the equity markets lower. But, in our corner of the world loans continue to chop along. Bids were heavier for the most part today in the secondary since people remain better sellers. The $281 million BWIC was well subscribed and got taken down in its entirety. Today we got earnings from Tenneco, Neiman’s, Spirit Aero, Sally Beauty, CBRE, Limited Brands and Starwood. The results were mostly positive and beat out estimates in certain cases. The retailers boasted increases in same store sales and the rest talked about how operational improvements and cuts have helped boost their bottoms lines. However, their bank debt didn’t really move because this was largely expected and already priced in. The LCDX 13 was out the door weaker today and continued to trade off throughout the day, along side equities. Tomorrow, keep your eyes open; a lot of people are nervous and the dooms-day theorists have been given a lot of airtime. Non-farm payrolls will set the pace for tomorrow, but stay your course and don’t buy into all the hype. Our product is senior secured so; maybe we can catch a puff if people flock to safety.
  • Price talk on IMS Health Inc's U.S. and Euro term loan is LIB+350-375 with a 1.75% Libor floor and a 98.5-99 OID, sources said. A bank meeting is scheduled for today in New York at 1:30 p.m. Earlier, a bank meeting was held in London to launch the $2.275 billion buyout financing.
  • Price talk is LIB+400 with a 99 OID on Anchor Glass Container Corp's first-lien loan and LIB+800 with a 98.5 OID on the second-lien loan, sources said. The second-lien loan has call protection of 103, 102 and 101. Both tranches have a 2% Libor floor.
  • Neiman Marcus' TLB rose about 25bp to 91-91.5 after the issuer posted a rise in January revenues, sources said. This morning, the company said total revenues for the four weeks ended Jan. 30 was $242 million, up from $223 million in the year-earlier period. Comparable revenues in the period rose to $238 million from $223 million a year earlier.
  • Freescale Semiconductor's $3.5 billion "old" TLB moved up about 1.25 points to 92-93 after the company held a call to discuss an amendment and extension of its senior secured credit facility. The company intends to extend about $1 billion of its term loans to Dec. 1, 2016. The company is proposing a new spread of LIB+425 with no Libor floor. The company is offering a 25bp amendment fee. Commitments are due Feb. 12.
  • Moody's today upgraded Dole Food's Corporate Family Rating (NYSE:CFR) to B1 from B2 and assigned Ba2 ratings to the company's proposed senior secured term loan facilities. The rating outlook is stable. Moody's also assigned a new Speculative Grade Liquidity Rating at SGL-2. Proceeds from the new facilities will be used to repay the exiting term loans B and C as well as the $70 million balance remaining on the notes due 2011.
  • Price talk on Harbor Freight Tools' $494 million, four-year term loan is LIB+350 with an OID of 99.25 and a 2% Libor floor, sources said. Financial covenants will include total leverage, interest coverage and capital expenditure. The loan will amortize in 1% installments. Proceeds are for refinancing an existing loan.