Two new issues broke for trading last week and are now changing hands above par. FairPoint Communications’ $400 million “B” loan broke in the 100 1/2-101 context and then traded up to the 100 3/4-101 1/4 level. FairPoint’s deal is led by Deutsche Bank and also comprises a $100 million revolver. Entravision Communications Corp.’s $250 million “B” loan allocated in the 100 1/2-100 3/4 range and is led by Goldman Sachs and Union Bank of California. FairPoint’s “B” loan and revolver are priced at LIBOR plus 3 1/4% and LIBOR plus 3 1/2%, respectively. Entravision’s “B” is priced at LIBOR plus 1 3/4%.
Meanwhile, some activity was registered in other recent new issues. PanAmSat’s $1.66 billion “B” loan was active in the 100 1/8-100 1/4 context, a trader said. The piece inched up to the 100 1/8-100 1/4 context up from the 100-100 1/8. A trader said the improvement could not be attributed to any technical reason. “The whole market is better,” he noted. “People are looking for paper,” he noted. Additionally, Rainbow Media’ s $600 million “B” loan, led by Bank of America and J.P. Morgan, changed hands a few times in the 101 1/8-101 3/8 context, a trader said. On the flow side, Charter Communications’ “B” loan traded in the 98 1/2 context where it changed hands at the beginning of the month.
PanAmSat’s “B” loan is part of a $2.71 billion deal, financing a buyout by Kohlberg Kravis Roberts & Co. PanAmSat and Rainbow’s “B” are priced at LIBOR plus 2 3/4% (7/5). Rainbow’s “B” loan, a $350 million revolver priced at LIBOR plus 2 1/2%. A Charter investor relations official and spokespeople for FairPoint, PanAmSat and Rainbow Media, did not return calls.