Wyndham International's bank debt climbed into the 80s from the mid-70s as the market reacted favorably to the generally positive news coming from the company's earnings statement. Wyndham's "B" loan traded in the 80 context, and its increasing-rate loan was said to be trading north of 82. The name has seen some pretty good flow last week, commented one trader. There is also mild speculation in the market that Wyndham may decide to take advantage of the healthy high-yield market to reattempt a bond issue after failing to find favorable terms last summer (LMW, 6/02).
Wyndham has been working toward an amendment of its credit facility in the hopes of pushing out the June 2004 maturity on its IRL to align it with the June 2006 maturity on its "B" loan (LMW, 2/17). Although the discussions are said to be progressing, with Wyndham offering the bank debt holders more collateral and compensation for their approval, no extension has been completed. During the company's earnings conference call last week, a company official addressed the amendment, noting that Wyndham is in the middle of discussions with lenders. Management and the board have been "laser focused" on extending the corporate credit in advance of the June 2004 maturities, the official said. Wyndham has also stated that it is currently in the process of refinancing $349 million in pools of mortgage debt due in 2003 and 2004. Calls to Rick Smith, Wyndham's cfo, were not returned by press time