Parts Authority $600 million loan allocates; loan funds see $38 million Friday inflows

By Paul A. Harris

Portland, Ore., Oct. 26 – Primary market activity remained muted on Monday, as stock indexes showed weakness related to the worldwide surge in coronavirus cases.

The Dow Jones industrial average sustained a 650 point fall on the day.

Parts Authority (PAI Holdco Inc.) priced and allocated its $600 million seven-year senior secured first-lien term loan (B1/B).

The deal featured a 400 basis points spread to Libor, atop spread talk that had tightened earlier from 425 bps.

The 99.25 issue price comes on top of revised talk, and rich to the earlier 98.5 to 99 price talk.

The dedicated bank loan funds saw $38 million of net inflows on Friday, the most recent session for which data was available at press time, according to a market source who chalked up the positive flow to the inclusion in the count of the newly launched JAAA CLO ETF, which contributed $120 million of inflows.

Bank loan funds have sustained $26.1 billion of net outflows for the year to Friday's close, the source recounted.

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