Apple Leisure sets bank meeting; Quanex Building sets talk; banks, CLOs bid for quality

By Paul A. Harris

Portland, Ore., Sept. 15 – The bank loan market saw better buyers in reasonably active trading on Tuesday, a trader said.

CLOs have been muted of late, said the trader.

However banks and CLOs are buying lower coupon, higher quality paper, the source said.

Owens-Illinois Inc. paper saw a pretty aggressive 100½ bid this morning, said the trader, adding that the buyer was a bank.

“In this market that’s pretty aggressive, despite the triple B rating.”

Meanwhile separately managed accounts, which are not sitting on a ton of money, are looking at the new issue calendar, the source said.

And retail buyers, because flows have been manageable, are going down the credit spectrum.

A lot of sell-side players remain out of the office because of the Rosh Hashanah holiday, the source mentioned.

Apple Leisure Group plans to offer $460 million of term loan debt to investors at a bank meeting on Thursday, according to a market source.

The deal includes a $330 million first-lien term loan and a $130 million second-lien term loan.

Quanex Building Products Corp. talked its $310 million seven-year covenant-light term loan B with a 375-bps spread to Libor atop a 1% Libor floor, at a reoffer price of 99, according to a market source.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.