J.P. Morgan won a $300 million loan portfolio that was auctioned off by TCW. The cover bid was 100.76, said a trader. The portfolio contains approximately 260 names and was also bid on by Banc of America Securities, Citigroup and Credit Suisse First Boston. This is the second auction from a major bank loan investor in a week as equity investors in the deals look to cash out. The TCW auction was held yesterday and a floor price was set at par and three-quarters, said one dealer. He added that it is an old KZH deal that is winding down and the equity investors want to cash out. Within the portfolio is about $20 million worth of revolvers and one distressed name. A TCW official declined comment.
This comes on the back of Sankaty Advisors selling off a $250 million portfolio of loans from its Great Point CLO II vehicle. Wachovia Securities placed the winning bid marginally above 100.07.