Nuveen loan breaks, trades higher; HCA term loans active; CIT up; LCDX posts ½ point gain

By Paul A. Harris

St. Louis, July 21 - The LCDX 12 index gained a little more than ½ point on Tuesday, ending the session at 90.4 bid, up from Monday's close of 89.99 bid, a syndicate official said.

The secondary was active, with tranches of the HCA Inc. term loan better bid, according to a mutual fund manager.

In the primary market the upsized Nuveen Investments, Inc. $425 million second-lien loan allocated and broke notably higher.

Nuveen breaks, trades higher

Nuveen Investments, Inc. priced an upsized $425 million 12½% second-lien term loan (Caa2) at 90.00 to yield 15.082%.

The deal, which was upsized from $350 million, priced on top of the 90 original issue discount price talk.

Deutsche Bank Securities, Banc of America Securities, Morgan Stanley and Wells Fargo Securities were joint bookrunners.

The first $222 million of proceeds will be escrowed for the purpose of taking out the company's 5% notes due 2010.

The remainder of the proceeds will be used to repay Nuveen's first-lien loan.

Late Monday the loan was at 93 bid, 94 offered, according to an informed source.

Big accounts took part in the deal, however a few small ones also played, the source added.

Despite the fact that the deal bears a striking resemblance to a high-yield bond, the preponderance of participation came from bank loan accounts, the source added.

HCA term loan active

Elsewhere the bank loan secondary was pretty active on Tuesday, according to a money manager whose portfolio is comprised of both high-yield bonds and syndicated loans.

Tuesday was the second day that Citigroup indicated it was doing over $100 million worth of trading of HCA term loans, the buy-sider added.

The HCA term loan A is 93¼ bid, up from 92 5/8 bid. The HCA term loan B is 92 3/8 bid, up from 92¼ bid on Monday, the source said, adding that Goldman Sachs has 10 by 10 markets in the name.

CIT revolver gains

Meanwhile the CIT Group revolver due December 2011 regained some ground on Tuesday, according to market sources.

The loan was at 69 bid, 71 offered, up 10 points, according to one source, who added that the unsecured revolver due 2010 closed around 70 bid.

Although CIT has set up $3 billion of private financing with some of its existing creditors, the commercial lender could still file for bankruptcy, the source added.

Wynnewood Refining in market

Wynnewood Refining Co., a wholly owned subsidiary of Gary-Williams Energy Corp., is in the bank loan market with a $150 million term loan, according to an informed source.

Deutsche Bank is leading the deal.

Timing remains to be determined.

Guidance is for a coupon in the Libor plus 600 bps area to price at an original issue discount of 90.00, with a 3% Libor floor.

The company is also doing a $150 million asset-based revolver.

Proceeds will be used to refinance debt.

The company is based in Wynnewood, Okla.

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