Jane Street sets talk in $2 billion deal; Loan funds see $212 million Friday outflows

By Paul A. Harris

Portland, Ore., Oct. 21 – During Monday's session in the loan market Jane Street Group LLC set pricing on its $2 billion seven-year first-lien term loan B (Ba3/BB-) with a 300 basis points spread to Libor and a 0% Libor floor at 99 to 99.5. Commitments are due on Oct. 30.

Elsewhere Wesco Aircraft Holdings Inc. talked its $600 million seven-year covenant-lite term loan B (B3/B) with a 525 bps spread to Libor at 98. Commitments are due on Oct. 31.

Meanwhile it has been “radio silence” on the GardaWorld $1,438,000,000 seven-year term loan B, a trader said on Monday. The deal kicked off at a bank meeting on Oct. 7, the source recounted.

Although there have not been any changes to the price talk, Libor plus 400 bps with a 0% Libor floor at 99, the market is expecting that talk to be sweetened, the trader said.

The daily cash flows of the dedicated bank loan funds were negative on Friday, the most recent session for which data was available at press time, according to a market source.

Bank loan ETFs sustained $22 million of outflows on the day.

Actively managed bank loan funds saw $190 million of net outflows on Friday, the source added.

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