The Cedar Fair term loan was down after word of a repricing. Bear Stearns is looking to take pricing down 50 basis points to LIBOR plus 2 1/2%, which has caused the tranche to trade around 101 1/8. It had been trading around 101 1/4-101 1/2.
The bank brought the deal to market last June as a five-year, $350 million revolver and a six-year, $1.495 billion term loan (CIN, 6/30). Peter Crage, v.p. finance and cfo, did not return a call.
Another Bear Stearns credit traded down and then firmed following a repricing announcement. MetroPCS Communications' term loan dropped to par 1/2-par 3/4 Tuesday after the bank said it was going to cut pricing on the term loan, but it firmed back up and closed on Wednesday at about par 3/4-101. "It took back all of its losses from yesterday; its back inline," a trader said. "It's the story of our times. Everything dips with repricing" and then goes right back up.
The company did a bank loan in October that consists of a $100 million revolver and an increased $1.6 billion term loan (10/16) and planned an initial public offering just a few weeks later (11/13). A spokesman did not return a call.