The loan market was active earlier in the day, but everything died out in the afternoon as many people left work early in observance for the pass-over holiday. Regardless, loans remain better bid, with most of the flow names firming an eighth. TXU, GGP, Constellation Brands, Avis and Lyondell were some of the notable movers. Ford’s term loan was firmer by 50 bps after the company sold off their Volvo unit over the weekend and announced that they expected a y/y rise in sales. Consumer spending rose for the fifth straight month in February despite harsh weather and further job losses. So, sentiment was improved helping forecasts for a strong 1Q10. The LCDX 13 was out the door this morning up an eighth to 104 3/8 – 104 5/8’s in decent volume. Outside of that, there is really nothing else to say. The trend of quiet and firm continues. Have a good night.
- Bank of America Merrill Lynch and Deutsche Bank have committed to provide the debt financing backing Madison Dearborn Partners' $915 million buyout of BWAY Holding Co. The purchase price includes the assumption of debt. Their term loan increased by almost two point to 90/93. Under the agreement, BWAY shareholders will receive $20 for each share of BWAY common stock they own, representing a premium, based on the closing price on March 26, of approximately 25% over the 30-day average closing trading price and 16% over the 90-day average closing trading price.
- Ford Motor Co's TLB-1 rose about 50bp to 97-97 1/2 after the company inked a $1.8 billion sale of its Volvo unit and said it would pay down $3 billion of its revolving credit facility. The issuer's five-year LCDS is currently quoted 360-400bp. The company also said it will announce March sales on April 1 and it expects a year-over-year rise in sales consistent with that of the prior few months. Yesterday, the company said it entered into a definitive agreement to sell Volvo to Zhejiang Geely Holding for $1.8 billion in cash and a note. Proceeds will be used to pay down term debt.
- General Growth Properties Inc is getting closer to filing a bankruptcy exit plan, with its board planning to meet today to give final approval to the proposal. The plan, which would have General Growth exit as a stand-alone company, is backed by three large investors -- Brookfield Asset Management, Fairholme Capital Management and William Ackman's Pershing Square Capital Management.
- Phillips Van Heusen is inviting pro rata commitments to the $450 million, five-year revolving credit facility and $500 million, five-year term loan A backing its acquisition of Tommy Hilfiger. Pricing is LIB+300 for USD commitments and 325bp over Euribor for euros commitments. The term loan has a 1.75% Libor floor.Bank meetings were held in London and New York last week. According to sources who attended the meetings, pricing was not revealed on the $1.5 billion, six-year term loan B.
On the Break
- HHI Holdings LLC's new $200 million TLB broke for trading this morning and is currently bid in the 98 context. The loan was sold at 97. The TLB is priced at LIB+750 with a 3% Libor floor. The facility runs alongside a $140 million revolver priced at LIB+350. Bank of America Merrill Lynch and Credit Suisse are leads. Proceeds back a dividend to shareholders.