Better bids in cash market could mean panic is over; LCDX inches higher

By Sara Rosenberg

New York, Aug. 22 - The cash loan trading market had a better tone to it as levels were stronger on lots of names, giving some the impression that maybe the panic caused by the recent volatility has subsided.

Also in trading, LCDX was a touch stronger possibly for the same reasons as cash, and possibly because equities were higher.

The cash market in general was higher on Wednesday, as names seemed to gain anywhere from a quarter to a half a point in light trading activity, according to traders.

"Bids feel like they're getting stronger. Only thing you can assume is that people aren't panicked anymore. Not a lot of activity. Just things bid up," one trader remarked.

"It could be that the panic is gone or it could just be that all those guys are out on vacation," a second trader joked.

One example of a name buoyed by market technicals was Parsippany, N.J.-based car rental group Avis Budget Car Rental LLC, which saw its term loan B move to 96 bid, 97 offered from previous levels of 95½ bid, 96½ offered, the trader said.

Another vehicle rental organization, Park Ridge, N.J.-based the Hertz Corp. also saw its term loan B strengthen with levels going to 97¼ bid, 97¾ offered from prior levels of 97 bid, 97½ offered.

And, at one point during the session, Hertz's term loan B hit a high of around 97½ bid, 98¼ offered, the trader continued.

Supervalu Inc., an Eden Prairie, Minn., supermarket operator, saw its term loan B rise to 98¾ bid, 99¾ offered from Tuesday's levels of 98¼ bid, 99¼ offered.

Burger King Holdings Inc., a Miami-based fast food hamburger chain, saw its term loan B move up to 98 bid, 99 offered from 97½ bid, 98½ offered.

And, Weight Watchers International Inc., a New York-based provider of weight management services, saw the bid on its term loan B rise to 97¼ from 97, while the offer remained unchanged at 99, the trader said.

"The bid on Weight Watchers kept climbing without any interest," the first trader added.

LCDX gains ground

LCDX was better on the day Wednesday with some saying that the same technicals that improved cash may have improved the index and some pointing to the rise in equities, according to traders.

The index ended the session at around 95.50 bid, 95.75 offered, up from Tuesday's closing levels of around 95.15 bid, 95.30 offered, traders said.

As for equities, at the close, Nasdaq was up 31.50 points, or 1.25%, the Down Jones industrial average was up 145.27 points, or 1.11%, the S&P 500 was up 16.95 points, or 1.17%, and the NYSE was up 144.59 points, or 1.55%.

Hunter Defense closes

Metalmark Capital has completed its acquisition of Hunter Defense Technologies, Inc. from Behrman Capital in a transaction valued at $335 million, according to a news release.

To help fund the transaction, Hunter got a new $265 million credit facility consisting of a $20 million revolver (B1/BB) priced at Libor plus 325 basis points, a $165 million first-lien term loan (B1/BB) priced at Libor plus 325 bps and an $80 million second-lien term loan (Caa1/B-) priced at Libor plus 675 bps, with call protection of 102 in year one and 101 in year two.

During syndication, pricing on the revolver and the first-lien term loan flexed up from original talk at launch of Libor plus 300 bps and pricing on the second-lien loan flexed up from original talk of Libor plus 625 bps.

Bear Stearns and Bank of America acted as the lead banks on the deal.

Hunter Defense is a Solon, Ohio, developer of comprehensive solutions to provide shelter, heat, power generation and chem/bio protection for military and Homeland Security applications.

Synchronous closes

Littlejohn & Co., LLC completed its acquisition of Synchronous Aerospace Group, according to a news release.

To help fund the transaction, Synchronous Aerospace got a new $95 million credit facility (B2/B) consisting of a $20 million revolver and a $75 million term loan.

Jefferies acted as the lead bank on the deal.

Synchronous Aerospace is a Santa Ana, Calif., manufacturer of structural components for the commercial and military aerospace and space industries.

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