84 Lumber prices, trades higher; TransDigm upsizes; PowerFlute brings euro deal

By Paul A. Harris

Portland, Ore., Oct. 12 – Yom Kippur celebrations dampened activity in the leveraged loan market on Wednesday, according to sources.

Investors are looking for whatever they can get their hands on, and loans tend to be trading above their call prices, a trader said.

Cash flow is flowing into the bank loan asset class, presently the highest they have been in 18 months, and are steadily increasing, the trader said.

Retail loan funds saw $80 million of daily inflows on Tuesday, the most recent session for which data was available at press time.

In the primary market, 84 Lumber Co. priced its covenant-light loan, which traded higher in the secondary.

84 Lumber priced its Libor plus 575 basis points seven-year covenant-light term loan B (B3/B+) at 98.00. The deal traded to par bid, 100¼ offered.

TransDigm Group Inc. upsized its incremental first-lien term loan F (Ba2/B) to $1.15 billion from $650 million. Discount talk tightened to 99.5 from earlier talk of 99 to 99.5.

And Powerflute Oyj scheduled a Thursday lender presentation for a €315 million credit facility backing the acquisition of Powerflute Oyj by Madison Dearboarn Partners. Barclays and Deutsche Bank Securities Inc. are the arrangers.

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