Radiation Therapy wraps term loan; SunGard, RSC, Hertz loans trade higher; LCDX up ¼

By Paul A. Harris

St. Louis, Feb. 21 - The bank loan market maintained a positive tone through the Thursday session, according to market sources.

The LCDX index closed at 91.75 bid, 91.85 offered, up from 91.50 bid, 91.75 offered at Wednesday's close, according to one syndicate source who added that sentiment in the cash market was good but volume was low.

"All three days of this week have been positive, but there has not been a lot of volume to support that," the syndicate official added.

Another source marked cash loans up ½ point on the day.

This official said that the LCDX has been outperforming high yield over the past few trading sessions, and noted having an afternoon discussion with derivatives traders who feel that the loan market is still cheap, and should rally a little further.

"People seem to be feeling a little better about the loan market," the source said.

"They may be thinking that the Fed won't continue to cut, and that Libor will stabilize, and climb back up."

Elsewhere another bank loan market source told Prospect News that AMG Data Services reported a $516 million outflow from bank loan funds for week to Feb. 20, the 20th consecutive outflow, the official added.

Names trading

Traders and others saw several cash loans on the move - and moving higher - on Thursday.

SunGard Data Systems Inc.'s term loan traded higher as the company put out positive numbers, a syndicate sources said, spotting SunGard's term loan B trading at 91½ bid, 92½ offered at Thursday's close, up from the previous close of 90 bid, 91 offered.

A syndicate official, meanwhile, noted that SunGard reported strong fourth quarter 2007 numbers, and added that the company's bonds as well as its bank loans traded higher on Thursday.

The privately held Wayne, Pa., software company reported on Wednesday that revenue for 2007 was $4.90 billion, an increase of 13% over revenue for the year 2006. Revenue for the three months ended Dec. 31, 2007 was $1.39 billion, an increase of 17% over revenue for the same period in 2006.

The official also noted that MGM Mirage released notable numbers on Thursday, but added that it loan paper "is pretty much tucked away with banks, so we didn't see much activity."

MGM Mirage reported record fourth quarter and full year 2007 financial results.

The company earned $2.85 per diluted share from continuing operations in the fourth quarter, compared to $0.68 in the prior year, while net revenues increased 4% to $1.9 billion.

Elsewhere a trader commented that the bid for the Boise Paper Co. term loan was a little stronger.

The source pegged it at 98 offered, up ½ point on the day.

Meanwhile a syndicate official said that the Boise Paper loan rose to a 97½ context, up ½ point on the day.

Sources were also marking the loan paper of Univision Communications Inc. higher on the session.

"Univision rose along with the rest of the loan market," said a syndicate source, who spotted it in an 82 context, and noted that the paper was trading down around 76 just a week ago.

"It has rallied pretty strongly in the past couple of days," the source added.

Another syndicate official marked Univision up ½ point on the day.

This source was also spotting the Hertz Corp. loan a point higher on Thursday at 93 bid, up from 92 bid at the Wednesday close.

This official also said that both the bonds and the second-lien term loan of RSC Equipment Rental Inc. rose Thursday on the heels of some good fourth quarter results, which included the company's intentions of deleveraging.

"Their results were down from the third quarter of 2007, but up year-over-year," the source said, adding that investors felt pretty good about the numbers.

The official marked the RSC second-lien loan at 82 bid, up a point over the past two days.

Radiation Therapy wraps

In the Thursday primary market, Radiation Therapy Services, Inc. priced its $440 million term loan (B1/BB-) with an interest rate of 425 basis points above Libor at an original issue discount of 99.00.

Wachovia led the LBO deal.

Price talk had the deal coming at par with a spread to Libor of 375 to 400 basis points.

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