Sedgwick finalizes add-on terms; outflows moderate; Grocery Outlet, Eco Services on tap

By Paul A. Harris

Portland, Ore., Sept. 26 – The LCDX 22 index of bank loan credit default swaps finished the Friday session unchanged at 103¼ bid, 103¾ offered.

Earlier in the session, there was heaviness, according to a bank loan trader working on the East Coast of the United States.

Sedgwick Inc. finalized terms on its $190 million Libor plus 500 basis points add-on second-lien term loan (Caa2/CCC+) at 97.5, in line with price talk.

Both the add-on and the existing loan will get call protection of 102 for one year and 101 for the following year.

The Burger King Worldwide Inc. Libor plus 350 basis points covenant-light term loan B was 99 3/8 bid, 99 5/8 offered, off a quarter to three-eighths of a point from Thursday's highs of 99¾ bid, par ¼ offered.

That was a function of the whole market being down, the trader said.

The $6.75 billion priced at 99 earlier in the week.

The trader expects new issues to slow down over the next couple of weeks due to a heavy primary market and outflows.

However, outflows moderated over the past week, the trader said.

Dedicated bank loan funds saw $383 million of outflows for the week to Wednesday, the smallest in a five-week succession of outflows, the trader said.

In the new issue market, plans were disclosed for rolling out deals from Grocery Outlet, Inc. and Eco Services Operations LLC in the week ahead.

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