Wyndham International is said to be in the process of amending its bank debt so that the maturity of its revolver and increasing-rate loan pieces, which mature in June 2004, align with the June 2006 maturity of its "B" term loan. The company's bank debt has been softer over the last couple of weeks with the "B" loan quoted in the 77 1/2 79 context and the IRLs quoted in the 80 1/2 82 1/4 range, according to LoanX. No trades could be confirmed as market players are likely hanging on to their current exposure until there is more certainty, said one buysider. At the end of last year, Wyndham had a $156.4 million revolver, a $447.7 million IRL and a $1.183 billion "B" piece. J.P. Morgan leads the bank deal.
Dealers and buysiders believe that the amendment in its current form does not offer any incentive for those holding the IRL paper. "There's really no carrot for them," said one buysider, explaining that IRL holders will only receive a paydown in the form of faster asset sales. "In its current form it's going to be tough to get done, unless the IRL holders commit some selfless acts of co-operation," said a dealer. The company reportedly needs 95% lender approval to pass the amendment. Calls to Rick Smith, Wyndham cfo, were referred to a spokesman, who declined to comment beyond the company's recent earnings release.
At the time of the company's latest earnings report, Fred Kleisner, Wyndham chairman and ceo, said the company still has 34 non-strategic assets remaining to be sold. As the company pursues these sales, de-leveraging the company's balance sheet will remain a top priority, he noted. Last summer, Wyndham was planning a bond deal that would take out the IRLs as well as pay down a portion of the company's revolver and "B" loan. After failing to get acceptable terms for the offering, Wyndham cancelled the deal. The company should have done the bond deal back during the summer, commented one dealer.