A small piece of the New Orleans Hornets' revolver was believed to have changed hands at around 101 1/2 last week. These are assets that people feel comfortable with, one dealer noted, explaining why the pro-rata was able to trade above par.
The Hornets credit, which comprises a $35 million revolver and a $40 million term loan priced at LIBOR plus 31/ 4%, was put in place this past spring. At the time, the basketball team's move from Charlotte to New Orleans was not set in stone, but the franchise has since met the required hurdles and will play in its new locale starting with the 2002-2003 season.