More repricings mean more credits trading down; the latest being Michaels Stores and Roundy's Supermarkets. Loans for both credits dropped about a quarter to half-a-point following the news.
Pricing on a $2.4 billion term loan for Michaels Stores is being cut to LIBOR plus 2 3/4% from LIBOR plus 3%. The credit traded down to around 100 7/8-101 1/8 from 101 1/2 after banks released price talk.
Deutsche Bank, Bank of America, JPMorgan and Credit Suisse brought the financing to market in October to back the leveraged buyout of the company by Bain Capital and The Blackstone Group (CIN, 10/13). A call to Jeff Boyer, co-president and cfo, was not returned.
Bear Stearns launched syndication last Tuesday of a $50 million add-on for Roundy's to acquire five stores under the Jewel-Osco name from SUPERVALU (1/15). The deal will also cut pricing to LIBOR plus 2 3/4% from LIBOR plus 3%. Roundy's term loan also dropped about half a point, trading around 100 3/4 to 101 1/8, according to a dealer. A call to Darren Karst, executive v.p. and cfo, was not returned.