Strong demand for paper pushed the $400 million "B/C" tranche of Inmarsat Ventures up to the 101 range. European dealers said the name was trading into both banks and institutional investors with strong demand coming from the U.S. as well. "It's a good name and people were cut back on their allocations," one trader noted.
Although the deal was a favorite in the market, the dollar denomination of the loan prevented many European investors from buying into the credit. The U.K. domicile of the company meanwhile inhibited some U.S. investors from purchasing the paper. Rather than shoot right up, the "B/C" piece only reached the 100-1003/4 range shortly after the credit broke into the secondary market last month.
Inmarsat's loan includes a $75 million revolver, a $100 million capital expenditure facility, a $400 million "A" tranche, a $200 million "B" piece, and a $200 million "C" term loan. The loan is led by Credit Suisse First Boston, The Royal Bank of Scotland and Barclays and backs the acquisition of Inmarsat by Grapeclose, a company formed by Apax Partners and Permira. An Inmarsat spokesman did not return calls.