The recently syndicated deals for Metro-Goldwyn-Mayer Studios and TriMas have broken in the last two weeks, and the paper has been scooped up by hungry investors. Both names have been trading in 101 territory, according to dealers. MGM, which broke this week, was reported to have traded more than 10 times by Tuesday afternoon. Market players explained that prices for decent credits have been driven up as paper starved investors look to fill their baskets.
The $600 million "B" loan for MGM, led byBank of America, J.P. Morgan and Fleet Bank, sold out in the first day of the launch. The "B" was structured to tap the hungry institutional market as pro-rata lending continues to contract. Calls to the company were not returned by press time.
The TriMas paper is a $350 million "D" loan for Metaldyne that backs the separation of the TriMas business from Metaldyne on behalf of sponsor group Heartland Industrial Partners. Kurt Ruecke, company spokesman, noted that the sale has been completed.