Nextel Finance Co.’s new $4 billion revolver was quoted at 98 3/4-99 1/4 after allocating this week. A dealer said there were trades at this level, but one investor looking at the name was skeptical these levels will hold. He argued the credit default swap for Nextel is 153 basis points, which is more than 100 basis points higher than the yield on offer for buying the loan. A majority of term loans are being bid above par, but this is a revolving credit, which plays more for banks than for institutional players, he explained.
Huntsman International’s new $1.365 billion credit facility also allocated this week with the loan trading at 102 on the break. The new “B” loan combined the company’s $620 million “B” loan and $620 million “C” piece into one tranche. The company also borrowed an additional $125 million. Deutsche Bank and Citibank are leads on the loan which also extended maturities until 2010. The “B” was set to mature in 2007 and the “C” loan in 2008. Huntsman officials did not return calls. J.P. Morgan was joint bookrunner, UBS was syndication agent and Credit Suisse First Boston was documentation agent (LMW6/11). Huntsman officials did not return calls.