Traders and investors are eyeing Seat Pagine Gialle's jumbo E3.2 billion loan with market players evaluating where the loan is likely to trade in the secondary market. Some market players suggest the name would trade as low as the 97 range, but one loan official suggested that level was generated by rumors of a grey market. One buysider said he did think the name would trade outside of fees, but not lower than 98. "It will provide us with some entertainment over the next couple of weeks," he said.
Sources noted that the secondary market in Europe is becoming more transparent and influential. Good deals have been trading down in the secondary to adjust yields and compensate for the lack of variation of spreads in the primary market, explained one trader. The Royal Bank of Scotland, BNP Paribas, Barclays and Credit Suisse First Boston are leading the new deal.