Bank debt under a Wachovia Securities- led deal for Hollinger International subsidiaries Hollinger Publishing International, Telegraph Group and First DT Holdings (FDTH) held its levels despite noise surrounding the parent company. A few small pieces of the "B" loan were seen trading in the 101 5 / 8 - 101 7/ 8 range. Although the rumblings at the Hollinger International level did create enough volatility for a few pieces to leak out, traders said the paper was relatively hard to find.
The bank debt is held at the operating company level and is considered fully supported, explained the dealer. The amounts outstanding on the credit borrowed by Hollinger Publishing are secured by all of the assets in Hollinger Publishing and its material U.S. subsidiaries. Borrowings by Telegraph Group and FDTH are backed by all the assets of Hollinger Publishing and its material U.S. and U.K. subsidiaries. Moreover, also supporting the levels, the bank debt has a hard call protection of 102 until Dec. 23 and 101 for the next year. Still, one buysider said it is "highly likely" that the loan will get re-priced when the call premium drops to 101. The "B" loan currently carries LIBOR plus 3 1 Ž 2 % pricing, according to one dealer.
There have been management changes at Hollinger International, including the retirement of CEO Conrad Black , and David Radler , as president and chief operating officer. The company revealed that Black, Radler and other senior management officials received unauthorized payments. Hollinger International has also has retained Lazard to help the company explore the sale of the company, a sale of one or more of its major properties or other possible transactions. Calls to financial officials at Hollinger International were not returned.