Fidelity National Information Services' $2 billion "B" loan traded around par, down from its 101 1/8 high, while Venetian Casino Resorts' $970 million "B" tranche went off at 100 3/4-101 down from a 101 7/8 peak.
Fidelity's "B" loan is priced at LIBOR plus 1 3/4%. One banker suggested that hedge funds or institutional investors that were parking extra cash in the loan may want to move it elsewhere now that opportunities are opening up in other markets. A dealer asked "Let's say he wants to buy GM bonds. What are you going do?" Fidelity is rated BB/Ba3.
The "B" loans of both credits touched the 101 level after breaking. Fidelity's "B" broke four weeks ago. The $3.2 billion credit also comprises an $800 million "A" loan and a $400 million revolver led by Bank of America, J.P. Morgan, Wachovia Securities, Deutsche Bank and Bear Stearns. The Goldman Sachs-led Venetian credit also has a $450 million revolver and a $200 million delayed term loan.