Intermet Corp.'s $120 million "B" loan continues to move upward and has been quoted two points higher in the 95-96 range. Tower Automotive and Metaldyne also traded up during the week, with a trader attributing Tower's rise to better-than-expected results. The trader said Metaldyne had been impacted favorably by the Tower news, which announced adjusted EBITDA of approximately $35.4 million in the third Quarter and is expecting adjusted EBITDA of approximately $67-75 million in the fourth quarter.
One trader said Intermet's rise is due to the company's access to a $60 million debtor-in-possession facility from Deutsche Bank and The Bank of Nova Scotia. Intermet filed for bankruptcy a month-and-a-half ago, citing monumental increases in steel prices as the reason (LMW, 9/27). The "B" loan then traded in the 78-80 context, while the $90 million revolver was seen in the upper 80s range. Intermet's pre-petition bank debt is led by Scotia. The company's $90 million revolver is priced at LIBOR plus 3 3/4% and the "B" loan is priced at LIBOR plus 4 1/4%. An Intermet spokesman did not return calls.
Tower's $425 million first-lien loan strengthened to the 99-99 1/2 range up from the 97 1/2-98 range, where it traded two weeks ago. Meanwhile, Metaldyne's $400 million "D" loan ticked up to the 99 3/8-99 7/8 context from the
98 1/2-99 1/2 level.