Seat Pagine Gialle's new credit has held up far better than expected in the secondary loan market due to a well-managed book and investors' strong demand for paper, market players said. The "B/C" piece was trading at par last week and the pro rata had climbed into the 991Ž4 range, according to European loan sources. "The loan has been trading well within fees," one trader noted. Prior to the holidays, the "B/C" piece was changing hands in the 99-991Ž2 context and some market players speculated the levels could dip post-new year (LMW, 12/11). But that dip never came.
Last week, traders attributed the strong levels largely to the arrangers who had completed the loan--The Royal Bank of Scotland, BNP Paribas,Barclays and Credit Suisse First Boston. Indeed, "People had misread the arrangers strategy or posture," said one dealer. "It's an asset that the arrangers like, so they are not massive sellers."