Eco Services, DTZ, SourceHOV set pricing; Halyard hangs in; funds see $825 million outflows

By Paul A. Harris

Portland, Ore., Oct. 9 – Bank loans were weaker in Wednesday trading, according to a trader.

In a generally quiet primary market, Eco Services Operations LLC, DTZ and SourceHOV LLC set price talk and timing on deals in the market.

The Halyard Health $390 million Libor plus 325 basis points seven-year senior secured term loan B continues to trade above par, the trader added, spotting the paper at par 3/8 bid, par 7/8% offered. That deal came at 99 early in the month.

The LCDX 22 index of bank loan credit default swaps was down half a point on Thursday, according to a hedge fund manager who marked it 103 bid, 103½ offered at the close.

And dedicated bank loan funds tallied $825 million of outflows for the week to Wednesday, according to a market source.

Eco Services revised pricing on its $500 million seven-year first-lien covenant-light term loan (B1/B+), reducing the Libor spread by 25 basis points and trimming the discount by 50 cents, according to a market source.

New talk has the deal coming at Libor plus 375 bps, decreased from 400 bps. The 1% Libor floor is unchanged.

Price talk is 99.5, changed from earlier talk of 99.

Commitments were due at Thursday's close.

Credit Suisse Securities (USA) LLC is the lead.

The $555 million credit facility also features a $55 million five-year revolver.

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