Bank of America is conducting a sale of $212 million worth of loans on behalf of Eaton Vance Management. The bank has approached approximately nine dealers for the sale. Bids on the portfolio are due by Friday and market participants believe that the sale price will be high. "I think it's going to be bid pretty aggressively. The existing [portfolio manager] is also going to be bidding on it," said one buysider. Loan sources said the rumor is an equity investor in one of Eaton Vance's vehicles is encouraging the sale. Eaton Vance and B of A officials did not return calls by press time.
The portfolio includes a plethora of credits in small pieces. Names in the portfolio include Adelphia Communications Corp., Alliance Gaming Corp., Boyd Gaming Corp., Berry Plastics Corp., Charter Communications, Crown Holdings, Del Monte Foods Co., DIRECTV, Graphic Packaging Corp., Jefferson Smurfit Group, Kmart Corp., Noveon International, Oriental Trading Co., Rite Aid Corp., SPX Corp., and TRW Automotive Holdings Corp. "It's a clean portfolio," said one buysider.
Eaton Vance recently bought General Re-New England Asset Management's $335 million portfolio from J.P. Morgan. The average price of that sale was said to be between 101 1/4- 101 1/2 (LMW, 2/16).