As LMW went to press last week, Wyndham International was expected to receive all the votes it needed to pass an amendment extending the maturity of its increasing-rate loan. According to market players, the new draft will have the company's IRL mature a month before the June 2006 expiration date on its "B" loan. The facility was set to mature in June 2004. The market for the company's bank debt was stronger on the prospect that the amendment, and the extra incentives it provides, will be completed. The IRLs were quoted in the 83-841/2 context and the market for the "B" loan was 801/2 -811/2. A $10 million combination of the two facilities traded last Thursday.
Wyndham's amendment will offer an increase of 1% on the coupon for both the "B" and the IRL, boosting the spread over LIBOR to 53/4% for both. The increase for the "B" loan will be provided through a payment-in-kind feature, whereby "B" loan holders will receive an extra one percent of term loan paper. The amendment will also offer additional properties to the bank debt holder's security package and the company has committed to certain debt-reduction targets that if not completed will trigger further increases to the bank debt coupons. Rick Smith, Wyndham's executive v.p. and cfo, did not return calls.