HCA Trades Down On Reprice Talk
Lead bank Bank of America is looking to take pricing on the "A" and "B" loan of HCA to LIBOR plus 2 1/4% from LIBOR plus 2 3/4%, which has caused the term loans to trade down.
"They are both maybe quarter of a point lower," a trader said. The "A" was trading around par 5/8-par 7/8 and the "B" was at 101 1/8-101 3/8 and now it's trading around 100 7/8-101 1/8. "It's the biggest things going on right now," he said.
McJunkin Breaks, Holds Steady
McJunkin Corp.'s term loan broke yesterday and was wrapped around par 3/4-101 1/4 most of the day, a trader said. The credit consists of a $300 million asset-based revolver and a $575 million term loan.
On Jan. 26, Standard & Poor's affirmed its BB and 1 recover rating on the manufacturer's $300 million ABL revolver. It also affirmed its B+ rating on the company's $575 million secured term loan, but lowered the recovery rating to 4 from 3 following the decision to increase the ABL because there is now only $200 million in residual collateral available to coverall the term loan in the event of default.
Sbarro Serves Up Above Par
Sbarro broke around par 1/2-101 and traded up to par 3/4-101 1/4 by day's end Tuesday. The Italian restaurant chain turned to Credit Suisse and Bank of America for financing to back its leveraged buyout by MidOcean Partners announced in November.
The credit was launched at a bank meeting Jan. 10 as a $25 million revolver and a $150 million term loan "B," but was later increased to a $183 million term loan. According to a KDP research report, MidOcean also planed to issue $33 million of preferred equity and to invest $133 million in the form of equity.