1-800 Contacts flexes pricing; Mattress Firm sets talk; Petco outlines changes

By Paul A. Harris

Portland, Ore., Jan. 14 – Bank loans were trading in a narrow range on Thursday, with some names, especially the better quality credits, as much as ¼ point higher, according to a bank loan trader based on the East Coast of the United States.

Some of the lower quality credits have lately been down as much as ¼ of a point, the trader added.

“Given the volatility we’ve seen in stocks and high yield bonds loans have held in very well,” the source remarked.

Recent deals continue to trade well, the trader said.

The Microsemi Corp. $1.7 billion Libor plus 450 basis points seven-year term loan B was 99½ bid, par offered on Thursday.

The more recently priced Pinnacle Foods $500 million Libor plus 300 bps term loan I was up 3/8 of a point.

Petco Animal Supplies Inc. outlined changes to its $2.5 billion of seven-year covenant-light senior secured first-lien term loans (B1/B).

1-800 Contacts Inc. flexed pricing on its $500 million seven-year first-lien term loan (B1/B) to 425 bps from 450 to 475 bps and firmed the discount at 99, from discount talk of 98.5 to 99.

And Mattress Firm Holding Corp. talked its $730 million incremental first-lien term loan due Oct. 20, 2021 (Ba3/B+) with a 450- to 475-bps spread to Libor at 98.5 to 99.

Things could pick up in the primary market, the trader said, adding that there is buying interest among the CLOs.

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