LCDX bounces around; General Motors inches up; Hudson Products readies allocations

By Sara Rosenberg

New York, Aug. 25 - LCDX 10 seesawed throughout the trading session on Monday, with levels dropping in sympathy with equities and then, somewhat surprisingly, regaining most of the lost ground prior to the close.

Also in trading on Monday, General Motors Corp.'s term loan was stronger although the movement came in light volume.

Meanwhile, in new deal happenings, Hudson Products Corp. is getting ready to allocate its credit facility.

LCDX 10 had a bit of a volatile day as it headed lower with stocks and then rebounded most of the way later in the day, according to a trader.

The index went out around 96.85 bid, 96.95 offered, down slightly from Friday's levels of 96.90 bid, 97 offered, the trader said.

However, the index was quoted as low as 96.70 bid, 96.90 offered earlier on in the Monday session, the trader continued.

"It came back up even though equities are down. Not sure why," the trader added.

Nasdaq closed down 49.12 points, or 2.03%, Dow Jones Industrial Average closed down 241.81points, or 2.08%, S&P 500 closed down 25.36 points, or 1.96%, and NYSE closed down 144.52 points, or 1.73%.

General Motors rises

General Motors' term loan posted some gains during Monday's market hours, but there was no real reason for the positive momentum, according to a trader.

The Detroit-based automotive company's term loan was quoted at 74¼ bid, 75¼ offered, up from Friday's levels of 73½ bid, 74½ offered, the trader said.

"People might have been covering shorts. [Also], people are cleaning up books, I think, so you'll see people take views one way or the other. There was no real flow," the trader explained.

On the other hand, General Motors' counterpart, Ford Motor Co., a Dearborn, Mich.-based automotive company, saw its term loan levels remain unchanged on the day at 77¾ bid, 78¼ offered, the trader added.

"Most stuff is unchanged on the loan side even though equity is down. No volume. A lot of people are out this week," a second trader remarked.

Hudson allocations near

Over in the primary side, Hudson Products is targeting to give allocations out on its $250 million credit facility (Ba3/BB-) on Tuesday morning, according to a market source.

The facility consists of a $30 million five-year revolver and a $220 million seven-year term loan B, with both tranches priced at Libor plus 500 basis points with a 3% Libor floor for life.

The term loan B was sold to investors at an original issue discount of 97.

During syndication, pricing on the revolver and the term loan B was flexed up from original talk at launch of Libor plus 425 bps, and the original issue discount on the term loan B was widened from initial talk of 98.

BNP Paribas is the lead bank on the facility that will be used to help fund the buyout of the company by Riverstone Holdings LLC from the Sterling Group LP.

Other buyout financing will come from $125 million of mezzanine debt.

Hudson Products is a Sugar Land, Texas, designer and manufacturer of air-cooled heat exchanger equipment to serve the oil, gas and petrochemical processing industries.

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