Tower Automotive's first-lien bank loan inched down slightly to the 100-100 1/2 range toward the end of last week after breaking last Tuesday north of 101. "The first-lien has had some seller pressure. The deal was not as well subscribed as advertised," a trader noted. But another trader countered that after some seller pressure the paper was being better bid in the low par range and was seen in the 100 1/8-100 5/8 range. The second lien, on the other hand, was trading well, dealers commented. One trader said the five-and-a-half year second-lien was consistently trading at 101 1/4-101 3/4.
The $565 million credit comprises a $50 million revolver, a $375 million first-lien loan and a $140 million second-lien synthetic letter of credit. The revolver and "B" are priced at LIBOR plus 4 1/2% and the second-lien has a spread of LIBOR plus 7%. Morgan Stanley and J.P. Morgan lead the facility. A Tower Automotive spokesperson did not return calls.