Hunstman LLC's $715 million term loan traded actively around the 101 1/2-101 7/8 context after it broke in the 101 3/8-101 5/8 range. Meanwhile, Peabody Energy's pro rata tranche also allocated in the 100 1/4 context and moved up to the 100 1/2 range. Huntsman's term loan is priced at LIBOR plus 3 1/2%. Deutsche Bank leads the Huntsman bank debt that also has a $350 million revolver priced at LIBOR plus 2 1/4%.
Peabody has a $900 million revolver and a $450 term loan priced at LIBOR plus 1 1/4%. Peabody's deal is led by Bank of America and Wachovia Securities (LMW, 9/27). A trader does not expect the deal's levels to jump higher due to its low spread. John Heskett, director of investor relations at Huntsman, did not return calls. A Peabody spokesman also did not return calls.
Meanwhile, the bank deal for Graham Packaging is still trading actively three weeks after breaking. The company's $1.45 billion first-lien loan is trading in the 101 3/8-101 5/8 context while its $350 million second-lien traded in the 102-102 3/8 context. "This signifies the fact the company is a good offering," said Mark Leiden, director of investor relations. Graham's first lien is priced at LIBOR plus 2 1/4%, while the second-lien flexed down in syndication to LIBOR plus 4 1/4% from LIBOR plus 4 3/4%. The deal is led by Citigroup. Proceeds from Graham's deal will back the acquisition of the plastic container unit of Owens-Illinois (LMW 9/20).