Trident Exploration's $150 million second-lien term loan broke in the secondary at 101 1/2 last week. A trader said there was only light trading in the name. "It is a buy and hold asset. It is not really a flow trading name," he said.
The deal is an add-on to an existing $175 million second-lien tranche. It has a $50 million delayed draw component and is priced at LIBOR plus 7 1/2%. Proceeds from the loan will partly be used to fund the purchase of the Southern Ute Indian Tribe's Canadian coalbed methane assets for $175 million. The purchase includes all of Trident's common and preferred equity owned by the Southern Ute Indian Tribe. An official at Trident did not return calls by press time.