The new Michael Foods bank debt traded up as high as the 102-1021/ 2 range after the paper broke into the secondary market. Traders said technicals and a relatively juicy spread encouraged the loan to inch up. The credit is priced at LIBOR plus 33/ 4%. "It's in the stratosphere. It's ridiculous," said one dealer. But he noted that the loan just got done and some people consider that an equivalent to a soft call provision due to the belief that the paper will not be repriced in the near future. Bank of America, Deutsche Bank and UBS lead the deal, which backs Thomas H. Lee Partners' $1.05 billion acquisition of Michael Foods. The allocations on the loan were said to be slim (LMW, 11/17). Calls to John Reedy, Michael Food's cfo, were not returned by press time.
Plump Michael Foods Breaks