Wyndham International was collecting signatures Wednesday for its recent draft of an amendment that would extend the maturity of its increasing rate loan. According to market players, the new draft will have the company's IRL mature a month before the June 2006 expiration date on its "B" loan. The market for the company's bank debt was stronger on the prospect that the amendment, and the extra incentives it provides, will be completed. The IRLs were quoted in the 83-84 1/2 context and the market for the "B" loan was 80 1/2 -81 1/2.
The amendment will offer an increase of 100 basis points on coupon for both the "B" and the IRL, increasing the spread over LIBOR to 5 3/4% for both. The increase for the "B" loan will be provided through a payment-in-kind feature. The amendment will also offer additional properties to the bank debt holder's security package. One dealer thought the amendment would fall short of getting approved. "They keep swinging away, but they keep missing," he said of the company's attempts to get the extension done. One buysider, however, was confident that the deal would be completed. Calls to RickSmith, executive v.p. and cfo, were not returned.
EnronCorp. has been trading fairly actively this week with at least a $35 million block of the company's corporate loan changing hands in the 20-21 context. Traders said the bank debt had been weaker since a bank meeting last Wednesday. The subject of the meeting could not be determined. The paper was a touch stronger today with reports that the company was pursuing litigation. The bonds have also been actively trading in the 17 1/2 context. Calls to Enron officials were not returned.