Wyndham's Debt Ticks Up on

  • 21 Oct 2001
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Wyndham International's bank debt is starting to resurface, treading water in the 78-82 range last week. The increasing rate loan is in the 77-78 range, the revolver last traded in the 80 range, and the "B" paper traded in the 79-80 range. A dealer explained the levels have been supported by the company's recent announcement that occupancy rates have improved. Also, the distribution of funds from asset sales will be used to pay down a variety of debt, as opposed to simply paying down the revolver. "This gives benefit to everybody," he said. Wyndham has also recently secured covenant relief.

Calls to Richard Smith, cfo, were referred to the company's investor relations department. Andrew Jordan, spokesman, confirmed that Wyndham offered to put 50% of its asset sales to paying down the IRLs, 37.5% to the term loan, and 12.5% to the revolver. The announcement came after Sept. 11. "In conjunction with our waiver agreement with the syndicates, the net cash proceeds will go to pay off debt," he said, adding that the waiver is good through the next two quarters until the company gets a permanent amendment in February. Further details on the covenant waivers were not available.

Dealers said industries such as hotel and airlines were already weakening in a recession, and that the Sept. 11 attacks further shook people's confidence in the market as well as their travel safety. Wyndham has a $1.3 billion deal that breaks down into three tranches. Pricing is LIBOR plus 3 3/4 %. J.P. Morgan is the lead arranger.

  • 21 Oct 2001

GlobalCapital European securitization league table

Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 Bank of America Merrill Lynch (BAML) 7,026 25 11.95
2 Citi 6,449 21 10.96
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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3 Wells Fargo Securities 87,449.35 261 9.51%
4 JPMorgan 67,955.87 206 7.39%
5 Credit Suisse 50,788.13 152 5.52%