Wyndham International ’s bank debt was stronger this week with the company’s term loan “B” trading as high as the 96-97 range and its increasing rate loan (IRL) moving in the 96 1/4-97 1/4 range. Last month, the company met the requirements it needed to extend out the maturity of its IRL and revolver tranches until April 2006. These requirements were set forth in a May 2003 amendment to the company’s credit agreement. They included the principal repayment of about $200 million of the term loan and IRL before Feb. 29. The company also had to extend or refinance a 1999 commercial mortgage-backed securities pool with Lehman Brothers beyond June 30, 2006, the maturity date of the company’s term loans. Calls to company officials and a spokeswoman were not returned by press time.
Other names felt the upward pressure due to a strong buying trend in the market, with one trader citing the “January effect.” Reliant Resources ’ term loan, which was only a touch stronger in the 96-97 1/2 range last week after the company tapped an escrow account to pay down $917 million of bank debt, surged to the 99-99 1/2 range. Calpine Corp. ’s second lien loan was also trading in the 99 range. Finally, Mirant Corp. ’s ’03 bank debt was trading in the 61-62 range up from the 58 1/2-59 1/2 context. A U.S. District Court recently ruled to deny the Mirant’s motion to reject an agreement between the company and Potomac Electric Power Co. (Pepco). Mirant plans to appeal that ruling (LMW, 1/5).