Investors sought to accumulate positions in Quality Home Brands' new $100 million second-lien loan priced at LIBOR plus 6 1/4%, helping to boost its trading levels on its break in the secondary market last week. The second lien broke at 101 1/4, while its $290 million first lien broke at 100 3/8. Bear Stearns and BNP Paribas lead the deal, which backs Quality Home Brands' acquisition of Encompass Lighting (CIN, 6/9).
A trader said the second lien had small allocations and that several accounts were trying to build positions in the debt. Original price talk was in the LIBOR plus 6 1/2-6 3/4% range. The first lien is priced at LIBOR plus 2 1/2%. The deal was reworked due to oversubscription; the original credit consisted of a $270 million first lien and a $120 million second lien. A call to William Haley, cfo, was not returned.