Wyndham heads north by a point, Nextel up about a quarter as investors scour for paper

By Sara Rosenberg

New York, June 10 - Wyndham International Inc.'s term loan B was up by about a point on Tuesday as people continued to search the secondary bank loan market for paper and the market continued to show support for the company's recently completed amendment. Also up on market technicals was Nextel Communications Inc., with its term loan A, B and C quoted up by about a ¼ point.

Wyndham's term loan B was quoted at 85 bid, 86 offered, according to a trader.

"People are looking for paper," the trader explained. "Also, there's some follow-through from the recent completion of the amendment."

At the start of last week, Wyndham announced that after months of negotiations it successfully amended its senior corporate credit facilities, extending the maturity date of the increasing rate loans and revolver to April 1, 2006 from June 30, 2004, upon satisfaction of certain conditions, including the repayment of certain levels of existing debt within the next nine months.

As a result of the extensions, the company has no significant corporate facility maturities until 2006.

Over 95% of the IRLs and revolving credit facility lenders voted in favor of the amendment; loans held by the non-consenting lenders will retain the original maturity date.

J.P. Morgan Chase is administrative agent on the Dallas hotel enterprise's loan.

Nextel's term loan B and term loan C continued to strengthen slightly on Tuesday after moving up about a point during the previous day's activity. The two tranches were quoted with a 99 5/8 bid, compared to 99 3/8 bid, 99 7/8 offered on Monday, according to a trader.

The Reston, Va. wireless company's term loan A was quoted at 95½ bid, 96¼ offered, up about a quarter of a point and the revolver was quoted pretty much flat at 941/4, 95¼ offered, according to the trader.

The move is basically being attributed to demand outweighing supply as new funds are ramping up and companies have recently been paying down bank debt.

Another factor involved, according to the trader, is that with the strengthening of the market there has been a rise in acquisitions. Nextel has always been thought of as an acquisition target because of its direct connect feature so taking into account the recent market trend the possibility of an acquisition may be on peoples' minds, the trader explained.

In primary news, Worldspan LP launched a $150 million credit facility, consisting of a $100 million term loan with price talk of Libor plus 450 to 500 basis points and a $50 million revolver, sources said. Lehman Brothers and Deutsche Bank are the lead banks on the deal.

Proceeds will be used to help fund the previously announced leveraged buyout of Worldspan from its three airline owners by Travel Transaction Processing Corp., a company formed by Citigroup Venture Capital Equity Partners LP and Teachers' Merchant Bank.

Worldspan is an Atlanta travel technology resource for travel suppliers, travel agencies, e-commerce sites and corporations.

Inveresk Research Group Inc. also launched a $150 million credit facility on Tuesday. Wachovia is the lead bank on the deal.

The facility consists of a $75 million three-year revolver and a $75 million five-year term loan A.

Proceeds will be used by the Cary, N.C. provider of drug development services for general corporate purposes.

In follow-up news, Vail Resorts Inc. closed on its new $425 million credit facility (BB-) on Tuesday, according to a syndicate source. Bank of America and Fleet were the lead banks on the deal.

The facility consists of a $325 million four-year revolver with an interest rate of Libor plus 200 basis points and a $100 million 5 1/2-year term loan B with an interest rate of Libor plus 275 basis points.

Proceeds are being used by the Avon, Colo. ski resort operator to refinance existing debt.

Symmetry Medical Inc.'s $113 million credit facility closed and funded on Tuesday, according to a syndicate source. Wachovia was the lead bank on the deal, which will be used to help fund an acquisition.

The facility contains a $15 million five-year revolver with an interest rate of Libor plus 400 basis points, a $38 million five-year term loan A with an interest rate of Libor plus 400 basis points and a $60 million six-year term loan B with an interest rate of Libor plus 450 basis points.

Symmetry Medical is a manufacturer of instruments, cases and trays for OEM orthopedic device market.

Gray Television Inc.'s $375 million 71/2-year term loan B (Ba3/B+) closed and funded on Monday, according to a syndicate source. Wachovia was the lead bank on the deal.

The tranche was priced with an interest rate of Libor plus 225 basis points.

The Atlanta-based media company is using the proceeds from the new term loan B to refinance existing debt.

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