Trading was light on the break of Time Warner Telecom's $600 million term loan and AlixPartners' $385 million term loan into the secondary market last week because most investors are happy with what they are holding, a dealer said. "People want to hold onto their assets. There is not a lot of flipping," he said. He added that the full CLO pipeline has meant there are more buyers in the secondary. "People are starting to put their money to work," he said.
Time Warner's term loan broke at 100 5/8-101 1/8. The lack of sellers explained the wide bid-ask spread on its break, the dealer said. The loan backs Time Warner Telecom's acquisition of Xspedius Communications and refinances debt (CIN, 9/15). Wachovia Securities and Lehman Brothers lead the deal, which includes a $100 million revolver. The loan is priced at LIBOR plus 2 1/4%. It was originally pitched at LIBOR plus 2 1/2%. A spokesman did not return a call.
AlixPartners' $385 million term loan broke at
100 3/8-100 7/8. Lehman Brothers and Deutsche Bank are leads on the credit facility, which will be used to recapitalize the corporate turnaround and financial advisory firm (CIN, 9/15). A spokeswoman declined to comment on the trading of the loan.