Neiman trades up with monthly numbers; Texas Competitive ticks higher; BRSP sees interest

By Sara Rosenberg

New York, June 4 - Neiman Marcus Inc.'s term loan B headed higher during the Thursday trading session after the company released monthly revenue results, even though those numbers showed a year-over-year decline.

Also in trading, Texas Competitive Electric Holdings' term loan B-2 continued to strengthen, a trend which has been seen for the past of couple of days for no specific reason.

Over in the primary market, BRSP LLC's proposed term loan has seen some positive reception from investors since launching earlier this week, and there are even some early orders that have already been placed.

Neiman term B rises

Neiman Marcus' term loan B gained some ground in the secondary market as May revenues were announced, despite a nearly $70 million drop when compared to last year, according to a trader.

The Dallas-based high-end specialty retailer's term loan B was quoted at 74½ bid, 75½ offered, up from 74 bid, 75 offered in the previous session, the trader said.

However, on Wednesday, some other traders had the term loan B quoted in the 73 bid, 74 offered context, which would make Thursday's improvement even more significant.

Neiman May revenues fall

For the month of May, Neiman Marcus reported total revenues of $246 million, down 21.5% from $313 million in May 2008, according to a news release.

Comparable revenues for the month were $240 million, down 23.3% from $313 million last year.

In the four-week May period, comparable revenues in the specialty retail stores segment, which includes Neiman Marcus Stores and Bergdorf Goodman, decreased 27%.

The company said that it experienced weakness across all geographies and merchandise categories in the specialty retail stores segment.

In unrelated Neiman news, there is a rumor going around that the company may be getting ready to launch an extension of its credit facility via Bank of America.

Specifics and confirmation of this chatter were unavailable prior to press time.

TXU gains progress

Texas Competitive (TXU) once again saw its term loan B-2 move into stronger territory, with no credit specific reason seen behind the positive momentum, according to a trader.

The term loan B-2 was quoted at 73¾ bid, 74½ offered, up from 73 bid, 74 offered at the close on Wednesday, the trader said.

The trader went on to say that the loan was at 72¾ bid, 73¾ offered at the open on Wednesday and at 70¾ bid, 71½ offered at the open on Tuesday.

Texas Competitive is a Dallas-based energy company.

BRSP nets attention

BRSP's proposed $275 million five-year senior secured term loan has already received some early orders from lenders as the company's conference call launch on Wednesday morning was well attended, according to a market source.

"Accounts attracted to pricing and potential for good OID here," the source remarked.

The term loan is being talked at Libor plus 450 basis points with a 3% floor and an original issue discount in the 92 to 93 area.

Call protection on the loan is 104 in year one, 102 in year two and 101 in year three.

Covenants include a debt service coverage ratio.

Barclays Capital is the lead bank on the deal, which will be used to refinance an existing term loan that was put in place in 2006.

BRSP is a special purpose entity covering two gas-fired power plants - Broad River and South Point - that are operated by Calpine Corp.

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