Universal Fiber hikes talk on second-lien loan; chemical names softer; outflows on Monday

By Paul A. Harris

Portland, Ore., Sept. 29 – Cash loans finished the Tuesday session up a quarter of a point, after having dropped three-quarters of a point on Monday, according to a loan trader who reported seeing more stability than had been the case at the opening of the week.

However there were distinct pockets of weakness, the source added.

Chemicals names were softer on the day, on news of the sector continuing to see challenges in the market place.

The loan paper of Chemours Co. was down a point at 87 bid, the trader said, adding that it traded in the high 88s on Monday.

Tronox Inc. loan paper was also getting beaten up, the source added, spotting it at 86½ bid, 87½ offered.

However Valeant Pharmaceuticals International Inc. loans, which traded as low as 97 bid on Monday, on news that Congressional Democrats are seeking a subpoena of documents related to price increases that occurred earlier this year, retraced some lost ground.

The Valeant C, D and E term loans were 97½ bid on Monday.

On Tuesday the C loan was 98¼ bid. The D loan was 98½ bid.

The Valeant term loan F was 99 bid, 99¼ offered on Tuesday, after trading as low as 98¼ bid on Monday, the trader said.

The LCDX22 bank loan index finished Tuesday unchanged at par bid, 101 offered, according to a hedge fund manager.

The cash flows of the dedicated bank loan funds were negative on Monday, the most recent session for which data was available at press time, a source said.

The funds sustained $65 million of outflows, $21 million of which came out of bank loan exchange-traded funds, on Monday, the source added.

Universal Fiber hikes talk

Universal Fiber Systems LLC lifted spread talk on its $40 million second-lien term loan (Caa1/CCC+) to Libor plus 925 basis points from earlier talk of Libor plus 850 to 875 bps, according to a market source.

The reoffer price remains unchanged at 98, as do the 1% Libor floor and the hard calls at 102 and 101.

As reported, pricing on the $165 million first-lien term loan (B1/B+) widened earlier to Libor plus 525 to 550 bps from Libor plus 475 to 500 bps.

The company’s $240 million credit facility also provides for a $35 million revolver (B1)

BNP Paribas Securities Corp. and Goldman Sachs Bank USA are the lead banks on the deal.

Proceeds will be used to help fund the buyout of the company by H.I.G. Capital.

© 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.