The EU heads of state offered nothing more than their official pledge of “determined and coordinated action” for Greece after there Brussels summit. Just what we all needed more empty promises. Regardless, equities rallied, but this was on short coverings, not euphoria that the Greece situation has been resolved. The loan market was about as sloppy as the streets of New York today. Loan prices had a large negative bias as brokers continue to troll for buyers, but no one is biting. Volumes were light and it was noted that it was tough to get things done. The recent volatility has turned a lot of people off of the credit markets. The news that the ITC DeltaCom notes were withdrawn and that Travelport terminated its cash tender offer after its IPO was canceled weighted on the psychology of the market, and has got people talking. The primary HY market has been on fire and been a beacon of hope for many. With troubles beginning to show up in the primary, the outlook for the loan world is getting a little grimmer. But, I don’t think that there is any reason to panic. Earnings have been mostly positive for the past two quarters so, the worst looks to be behind us. Concentrate on the fundamentals, and ignore the noise. It may be a little more difficult to refinance right now, but once concerns over the SWF contagion leaves the markets ADD brain, things will flatten out and the primary will open for business. There are still many names out there that have upcoming catalysts, which are always good for a decent pop in price. The LCDX 13 was tracking equities today and was up in decent trading and last seen at 100 ½ -100 ¾.
- ITC DeltaCom's $325 million secured note offering due 2016 was withdrawn due to market conditions, according to IFR, a Thomson Reuters service.
- Travelport's strip fell more than two points to 93-93.75 after the company scrapped its IPO plans, sources said. Meanwhile, the add-on TLC rose about 37.5bp to 100.5-101.25 on the news, sources said. The strip had gotten up as high as the 96 context after the company first unveiled plans to sell stock back in January. Travelport entered into a $1.04 billion add-on delayed-draw term loan to its $1.41 billion TLB (LIB+250) and a $25 million add-on to its existing $125 million LC facility in 2007.
- Moody's Investors Service placed the ratings of Spectrum Brands on review for possible upgrade following its recent announcement that it had signed a definitive merger agreement with Russell Hobbs, Inc.
- The OID on Preferred Maramont Cos' loan is 98, sources said. As reported earlier (story, 10Feb), the $95 million deal was launched yesterday by GE to refinance debt at Preferred Maramont. The deal includes a $30 million revolver and a $65 million term loan. Price talk is LIB+550 with a 2% Libor floor.
- A total of 29 banks piled into the $700 million, three-year senior unsecured revolving credit facility for Pinnacle West Capital Corp and its subsidiary Arizona Public Service Co, sources said. The facility was not upsized despite the heavy oversubscription. Iinstead, commitments were scaled back. Joint bookrunners Bank of America Merrill Lynch, Wells Fargo and fellow lead arrangers Barclays Capital and Credit Suisse hold $35 million each. Ten came in for $27 million each: Deutsche Bank, Goldman Sachs, Keybank, Mizuho Corporate Bank, RBS, Scotia Capital, Suntrust Bank, UBS, Union Bank and US Bank.
- Cinemark USA Inc is launching an amend and extend to its credit facility today with a call scheduled at 3:30p.m., sources said. Barclays Capital is lead. The company is asking to extend its $150 million revolving credit facility to March 2015 with an increased spread of LIB+250 compared to the existing LIB+200. The $1.086 billion term loan is proposed to be extended to April 2016 with an increased spread of LIB+275 compared to the existing LIB+175. Lenders are offered a 10bp consent fee. Commitments are due Feb. 24.
- Six Flags has cut pricing on its term loan B to LIB+375 from LIB+425 and has also added 101 soft-call protection to the facility, sources said. The 2% Libor floor and 99 OID on the TLB, due in 2016, remain unchanged. In addition, the company has upsized the TLB by $50 million to $730 million and downsized its revolving credit facility by the same amount to $100 million.