Ntelos sets price talk; Nuveen trades strongly in secondary; LCDX finishes up; CIT loan gains

By Paul A. Harris

St. Louis, July 22 - LCDX 12 closed the Wednesday session at 90.6 bid, 90.9 offered, up from Tuesday's close of 90.2 bid, 90.5 offered, a trader said.

Ntelos Holdings Corp. set price talk for its $635 million six-year first-lien term loan at 98.5.

In the secondary market the Nuveen Investments, Inc. $425 million second-lien term loan, which priced Tuesday at 90.00, was being marked sharply higher at 93¼ bid, 94¼ offered late Wednesday.

Meanwhile a trader who saw the $2 billion funded portion of CIT Group's new Libor plus 1,000 bps loan trade up 10 points, suggested that those who took it down may be sliding out of it.

Ntelos talk

Ntelos Holdings set price talk for its new term loan at 98.5, according to a market source. The $635 million first-lien tranche has a six-year maturity and a coupon of Libor plus 375 basis points.

JP Morgan is leading the $670 million credit facility, which additionally includes a $35 million revolver.

UBS is also involved in the deal.

Proceeds will be used to refinance and extend the maturity of Ntelos' outstanding $603 million first lien term loan due August 2011 and for general corporate purposes.

Ntelos is an integrated communications provider with headquarters in Waynesboro, Va.

Nuveen trades up

Meanwhile Nuveen Investments' $425 million 12½% second-lien term loan (Caa2), which priced Tuesday at 90.00 to yield 15.082%, traded up to 93¼ bid 94¼ offered on Wednesday, according to a trader.

The deal, which was increased from $350 million, was led by Deutsche Bank Securities.

CIT's new loan jumps

Elsewhere the secondary market passed a relatively quiet Wednesday, traders said.

The new CIT funded $2 billion Libor plus 1,000 bps rescue loan, which priced around 95.00 on Tuesday, subsequently traded up to a 105 context, a trader said.

The deal, which was arranged by Barclays Capital, is believed to have been taken down by the major bondholders, the trader said.

"And they're all obviously slipping out of it - taking their 10 points and walking away," the source remarked.

The new loan was more or less priced into the existing revolvers, the trader said.

The CIT 2010 revolver is trading in a 60 context, and the 2011 revolver is trading in a 50 context.

Neither have moved very much over the course of the past week, the source added.

As to whether the $2 billion loan will save the troubled commercial lender's skin, the answer is "No," the trader contended.

"You still have $7 billion of bonds maturing inside of the bank debt, so the loan is not enough to get them through.

"They're going to have to do other stuff to survive."

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.