The Barclay’s numbers this morning seemed to overshadow the issues going on in Greece and the equity markets were firmer globally. In the loan market, the tone has not changed since last week and things will continue to be volatile. There was talk floating around that the HY market was feeling a little better now that the forward calendar is thinning, but that is not a good thing for us in the secondary as that is going to weight on the technical’s since there will be less bond issues taking out loans. However, today we didn’t see any of these theories play out since volumes were light. The market was pretty much flat all day today, with names moving an eighth in either direction. General Growth Properties was a big winner today, firming close to 4 points today to 101 ¼ - 102 ½ after news broke that Simon Property Group offered $10 billion for the company. Lyondell was active as well today after a creditor panel reached an agreement on fraudulent-conveyance claims. Realogy was firmer by an eighth after issuing strong earnings. The LCDX 13 was up a quarter in sympathy with equities today finishing up at 100 1/2 – 100 3/4. I expect things to be pretty light and flat for the rest of the week; keep your eyes on the water for the next puff.
- General Growth Properties Inc's loans moved up 4-5 points this morning after Simon Property Group made a $10 billion offer for the company. The issuer's term loan A and revolver are both 101 bid, up from the 96-97 range before the news. GGP filed for Chapter 11 bankruptcy protection in April, at which point the bank debt was trading in the 22-24 context.
- LyondellBasell's CAM facility rose two points this morning immediately after the company said it reached an agreement with unsecured creditors, sources said. The CAM is currently 67.5-69. The issuer this morning said the agreement will pave the way for the company's emergence from bankruptcy protection. The proposed agreement resolves unsecured creditors' objections to the company's settlement of claims against the parties that financed the issuer's 2007 LBO.
- CITGO Petroleum Corp has sealed the amendment on its existing $1.8 billion credit facility from November 2005 and led by BNP Paribas, sources said. The company had asked to waive its interest coverage ratio and debt to capitalization covenants.
- Freescale Semiconductor has received consents from lenders holding more than 88% of its credit facility to extend a portion of the term loan B to Dec. 1, 2016, according to an SEC filing. Lenders have agreed to extend the maturity of at least $1.9 billion of the TLB, after the application of the gross proceeds from Freescale's $750 million senior secured notes which were used to pay down amounts outstanding under the credit facility. The eight-year notes priced earlier at par to yield 10.125%.
- Deutsche Bank is holding a meeting Thursday morning for Pierre Foods, sources said. As reported earlier, the company replaced its term loan last September with a $160 million term loan priced at LIB+600, a 2.5% Libor floor and an OID of 97.
- Chaparral Energy Inc today announced it is withdrawing its previously announced $400 million private placement senior note offering. Proceeds were to have been used to repay indebtedness under its existing credit facility and for general corporate purposes, the company said in a statement. The company has an existing $500 million revolver maturing in December 2012.