Deutsche Bank won a $116 million loan portfolio auction last Wednesday. The winning bid could not be determined, but the cover bid came in at 99.426. The portfolio consists of 30 par names. Credits include Warner Chilcott, Calpine Corp., General Growth Properties, Smurfit-Stone Container Corp. and Lake Las Vegas (CIN, 12/4/06).
A dealer said the largest position in the portfolio is $6 million of GGP's term loan. The smallest positions are in the $100,000-$200,000 range. The average spread on the loans is 216 basis points. There are fifty-seven tranches, according to a dealer. He added Deutsche will trade some of the loans straight away and others it will hold to make a market in. A call to a Deutsche Bank spokesman was not returned.