Lead bank Bank of America is looking to take pricing on the "A" and "B" loan of HCA to LIBOR plus 2 1/4% from LIBOR plus 2 3/4%, which has caused the term loans to trade down.
"They are both maybe quarter of a point lower," a trader said. The "A" was trading around par 5/8-par 7/8 and the "B" was at 101 1/8-101 3/8 and now it's trading around 100 7/8-101 1/8. "It's the biggest thing going on right now," he said.
The loan-only credit default swaps on HCA tightened 20 to 25 basis points on the news Monday but widened a bit Tuesday, with the five-years trading around 100. In general, many five-year LCDS contracts were trading a little wider Tuesday after they had been tightening for a number of weeks. An HCA official did not return a call.