Two satellite deals are trading higher as investors search for opportunities. The $460 million "B" loan for New Skies Satellites traded in the 101 3/4-102 after breaking around 101 3/8-101 3/4. Meanwhile, PanAmSat's $1.66 billion "B" loan traded at 101 1/4-101 1/2, moving up from the 100 3/8-100 5/8 range where it broke three months ago. "It's an arbitrage situation," a trader said, explaining that New Skies could have dragged attention to PanAmSat. "If New Skies broke above 101, PanAmSat should be a better buy," he noted.
New Skies revolver and term loan are part of a $956 million deal that backed The Blackstone Group's acquisition of the satellite operator (LMW, 10/4). The deal is led by Deutsche Bank and ABN Amro and also comprises a $75 million revolver. Pricing on the "B" loan is LIBOR plus 2 1/2% while the revolver is priced at LIBOR plus 2 3/4%.
PanAmSat's "B" loan is also part of a financing that backed the company's acquisition by private equity firms Kohlberg Kravis Roberts & Co., The Carlyle Group and Providence Equity Partners (7/12). PanAmSat's "B" is priced at LIBOR plus 2 3/4% and is led by Citigroup and Credit Suisse First Boston. New Skies officials could not be reached by press time. A PanAmSat spokeswoman did not return calls.