The junior term debt for Queens Moat Houses, a European hotel group, remained relatively flat despite reports that there are bids for the company's businesses. Morgan Stanley is assisting the company with its strategic review and recent reports have indicated that theReuben brothers, Macdonald Hotels and the Bank of Scotland are together bidding £350 million for Queens Moat's U.K. operations. Discussions with Queens Moat's lenders are said to be ongoing.
The paper was quoted in the 80-85 context last week. But one European buysider suggested that from the potential sales prices, there is a possibility that the term debt will be paid down. Queens Moat has roughly £632 million in total debt of which about £230 million is junior term debt, according to a company spokesman. The remaining amount of debt comprises junior convertible debt and mortgage debentures. The term debt is said to be tightly held. Citigroup, Merrill Lynch and Mizuho International were reportedly building positions in the paper last year.