Second-Lien Lenders Build Positions In Quality Home Brands

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.

  • 16 Jun 2006
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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.

  • 16 Jun 2006

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3 BNP Paribas 5,093 18 8.66
4 Barclays 4,040 11 6.87
5 Lloyds Bank 3,615 14 6.15

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