Citrix Systems term loan B bounces around after CPI data surfaces

By Sara Rosenberg

New York, Oct. 13 – Citrix Systems Inc.’s (Tibco Software Inc.) term loan had a bumpy ride on Thursday, with levels dropping following the release of higher-than-expected Consumer Price Index (CPI) numbers but then rebounding to end the day unchanged.

Citrix, a Fort Lauderdale, Fla.-based provider of secure, unified digital workspace technology, saw its term loan B quoted as low as 88½ bid, 89½ offered after CPI came out, a market source remarked. But, by the end of the day, the loan was quoted at 89¼ bid, 90¼ offered, in line with where it closed out on Wednesday.

The secondary loan market in general was unchanged to down a quarter of point, the source continued. He explained that the day started with the secondary unchanged to up a quarter of point but switched to unchanged to down a quarter of a point with CPI results.

Also, right after CPI was announced, loan trading volumes picked up as some sellers hit the market and some buyers came in to purchase names at discounted levels, the source added.

In the morning, CPI was reported up 8.2% on a year-over-year basis and core CPI was reported up 6.6% year-over-year. CPI was up 0.4% in September on a month-over-month basis and core CPI was up 0.6% in September.

Fund flows

Actively managed loan fund flows on Wednesday were negative $342 million and loan ETFs were negative $144 million, sources said.

Outflows for actively managed loan funds reaccelerated yesterday, sources added.

The tracking estimate for Thursday night’s weekly Lipper numbers for loans are outflows totaling $850 million.

Loan indices soften

In other news, IHS Markit’s iBoxx loan indices declined on Wednesday, with the Leveraged Loan indexes (MiLLi) closing out the day down 0.05% and the Liquid Leveraged Loan indices (LLLi) closing out the day down 0.06%.

Month to date, the MiLLi is up 0.64% and year to date its down 3.02%. The LLLi is up 0.94% month to date and down 3.90% year to date.

Average secondary market bids in the U.S. on Wednesday were 92.44, down 0.02% from the previous day and down 4.55% year to date.

According to the IHS Markit data, some of the top advancers on Wednesday were Yak Mat’s June 2018 covenant-lite term loan B at 59.55, up from 58.45, Hearthside Food’s April 2018 covenant-lite term loan at 83.17, up from 82, and Clarion Events’ February 2018 covenant-lite term loan B2 at 75.75, up from 74.75.

Some top decliners on Wednesday were Gopher Resource’s March 2018 covenant-lite term loan B at 76.50, down from 82.17, Lifescan’s October 2018 covenant-lite term loan at 73.13, down from 78.38, and Sound Physicians’ June 2018 term loan at 79, down from 84.

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