A total of $50-75 million of Finova Group's paper traded in 78-79 range last week, softening a little as the market winds down. Two weeks ago Finova hit 80 as market watchers cited an proposed deal between General Electric Capital Corp. and Goldman Sachs to take control of the company.
Dealers say the market is cooling down, which is why levels have softened. "We had a good run, but it's over," said a dealer, commenting on the slowing secondary market. The Scottsdale, Ariz.-based company offers commercial financing to small and mid-sized companies. Interest in the name has ebbed and flowed as financial institutions have shown interest. Leucadia National Corp. backed out of a proposed buyout of Finova late last year. Dealers seem divided on whether the latest proposal has any more likelihood of coming through. Finova has $4.6 billion in credit facilities, with $1.6 billion slated to expire this May. Citigroup leads the deal.