Loews Cineplex Entertainment's second lien loan is getting extra attention from investors with small pieces trading in the 97-97 1/4 range as market buzz suggests the company might look for new financing. "A lot of people think that there might be an IPO or bond deal," one trader said. The name is trading off of pure rumors that the company is going to do a bond deal to make a more complete capital structure, said another. Conversely, one banker denied the rumor, stating, "They can't get cheaper financing." Angelo Gordon and Bank of New York are two investors believed to hold positions in the name. The name last traded in the 95-96 range three weeks ago.
The company recently emerged from bankruptcy with a new C$140 million credit led by Deutsche Bank. In addition, Onex, a Toronto-based private-equity firm, teamed up with Oaktree Capital Management to purchase Loews by swapping bank and bond debt for 100% of equity. Onex got involved with the name by taking a strong position in its bank debt before the company filed for bankruptcy and Oaktree had a position in the bonds and bank debt. (LMW, 3/31). Calls to Mindy Tucker, Loews' corporate v.p. for strategic planning, were not returned by press time.