Levels for Wyndham International's term loan "B" moved up last week, as dealers noted a trade at 981Ž 4 and offers at 983Ž 4. Some payers attributed the move to a lingering rumor of a bond deal for the company, but others waved that off, pointing more to the credit's value relative to other paper in the market. "It's not a bad credit," one trader said. "Not a telecom name, better for people who are more risk averse." A market watcher commented on the overall strength of the market affecting the name. "The company is doing well. They have great cash flow, and the high-yield market is up," he said.
Wyndham is a Dallas-based hotel operator. Richard Smith, cfo, was not available for comment and referred calls to a spokesman, who declined comment.
Last summer the term loan "B" traded up a point to 981Ž 2 following a strong earnings report (LMW, 8/14). Even then market watchers noted that there were persistent rumors of the company doing a bond offering to pay off the increasing loan rate. J.P. Morgan Chase leads the credit. A bank spokeswoman declined to comment.