Wyndham International's term loan "B" softened to 90-93--down about three points-- and the company's increasing rate loan sunk to the 94-95 range. The credit has dropped from levels prior to the World Trade Center attack. Wyndham, a hotel chain, had been trading up to the 991/ 4 range until early this month. A rumored buyout from Bass Hotels supported the levels, but dealers said the hotel industry will be among the hardest hit by the attacks on New York and Washington. Calls to Richard Smith, cfo, were not returned. Darcie Broussart, spokeswoman, also did not return calls.
Dealers say any industry that relies on travel will feel the effects of the attack. "Vacation is cut back. This is going to hit the airlines, hotels, restaurants, any destination resorts. There's a common theme," said a dealer. He said the industries were already weakening in a recession, and that the attacks further shook people's confidence in the market as well as their travel safety. Wyndham has a $1.3 billion deal that breaks down into three tranches. Pricing is LIBOR plus 33/ 4%. J.P. Morgan is the lead arranger.