Weekly Trade Roundup
Technical Olympic USA's term loan fell 15-20 points to 68, rounding off a 32 points drop over the past two weeks.
Technical Olympic Debt Continues To Plummet
Technical Olympic USA's term loan fell 15-20 points to 68, rounding off a 32 points drop over the past two weeks. The homebuilder continues to grapple with the impact of poor sales at its joint venture, Transeastern Homes. The homebuilder's bonds and bank debt started to fall last week when it announced revised sales and delivery projections at the subsidiary, which has been hit by a slowdown in the Florida housing market where its business is concentrated. Its 7 1/2% '15 notes fell 4 points to 75 1/2. A call to Randy Kotler, interim cfo, was not returned.
Insight Midwest Breaks At 101
Insight Midwest's $1.8 billion term loan "B" broke at 101 in the secondary market. Bank of America and JPMorgan lead the loan, which parent Insight Communications will use to refinance existing debt. The term loan was increased by $75 million to satisfy investor demand for the loan, which is priced at LIBOR plus 2 1/4%. It was originally pitched at LIBOR plus 2%. A company official declined to comment on the trading of the debt.
Carrot Juice Recall Hits Bolthouse Farms
Bolthouse Farms' bank debt dipped after it recalled its 100% carrot juice product following incidents of botulism connected with the consumption of the juice. Its second-lien bank debt fell three-quarters of a point to 100 7/8, while its term loan "B" dipped an eighth of a point to 100 1/2. Bank of America and Goldman Sachs lead the loans. A dealer said the debt is generally illiquid and that trading volume had been light. The Calif.-based farm voluntarily recalled the juice after four people became ill with botulism, a potentially fatal disease, from drinking improperly refrigerated bottles of carrot juice. Citing a Food and Drug Administration release, a Bolthouse Farms' spokesman said the consumers fell ill after consuming juice that was not properly refrigerated once it was in the home. The company recalled carrot juice with use-by dates up to and including Nov. 11, 2006. He said it is too early to tell what financial impact the recall could have. He added carrot juice is just one of an array of products it offers.