The new bank loan for Inmarsat Ventures, a U.K.-based mobile satellite communications services provider, broke last week with the "B/C" tranches trading in the 100-1003/4 range and the pro rata around the 993/8-991/2 range. European loan sources said trading in Europe was relatively scarce because many banks held on to the loan and investors could not buy into the deal because it was completed in dollars. A European loan source noted that it would have been too expensive for his fund to invest in the paper.
One trader speculated that if the paper was denominated in euros it would have traded into the 101 context. It is not moving that high because some U.S. investors are staying away because it has a European obligor, while many European investors cannot invest because it is in dollars, he said. The interest needs to come from European accounts that can invest in dollars, he added.
The new loan includes a $75 million revolver, a $100 million capital expenditure facility, a $400 million "A" tranche, $200 million "B" piece, and a $200 million "C" term loan. The loan backed the acquisition of Inmarsat by Grapeclose, a company formed by Apax Partners and Permira. A company spokesman declined comment.