eircom's new loan is said to be the one of the "bright spots" in the loan market where assets were hard to come by. Loan sources noted that there is both ample supply and strong demand for the name. The strip of revolver and term loan are said to be trading in the 99.90 context after breaking into the market a few weeks back. One trader noted that the term loan on its own could trade above par.
The new E1.4 billion loan includes the revolver and term loan, which are both priced at LIBOR plus 11/2%. The latest refinancing comes in alongside eircom's E300 million initial public offering. Calls to Peter Lynch, eircom's cfo, were not returned by press time.