Wyndham International's increasing-rate loan firmed up to the 83-86 range from the 81-83 context after the company announced that it would sell 13 of its properties toWestbrook Hotel Partners IV for $447 million. A company spokesman said $240 million of the proceeds from the sale would be used to pay down the company's increasing-rate loan, its term loans and its revolver on a pro-rata basis. The remaining $189 million would go towards mortgage debt. Overall, this is a positive development, one trader noted, adding that the move reduces leverage and improves liquidity.
In early June, levels for Wyndham's increasing-rate loan fell from the 95-98 range to 91-94 after the company pulled a previously downsized bond deal. The new notes had been slated to pay down all of the company's increasing-rate loan and 10-15% of the company's "B" term loan. At the time, the company reasoned that market conditions would not permit the offering under terms that made sense to the company and its shareholders (LMW, 6/10).