The repricings that have dominated the loan market since the beginning of the third quarter continued last week, with Citibank's call for Alaris Medical Systems, one of the more prominent. An investor said Citi is attempting to cut pricing on the $235 "B" loan from LIBOR plus 23/4% by 50 basis points. "This was a wildly oversubscribed deal when it came in the summer," said one investor, acknowledging the rationale. A Citi banker declined comment. William Bopp, senior v.p. and cfo of Alaris did not retun calls.
Investors are showing increasing frustration with the repricings. Some were reported to be trying to rally around a group of loan managers to block Bank of America's repricing of DaVita's bank credit facility (LMW, 11/10). There was limited success. A loan manager said that 101 soft call protection has been added that protects against a bank refinancing but not a bond refinancing. In addition, "[B of A] put another tier on the grid on the upside," said the manager. LeAnne Zumwalt, v.p. of investor relations for DaVita, said the company is taking advantage of the current market conditions.