HUB loan trades to premium; funds see third positive weekly flows in 52 weeks

By Paul A. Harris

Portland, Ore., June 9 – The upsized HUB International Ltd. $4.75 billion SOFR plus 475 basis points seven-year term loan (B2/B) traded to 99 5/8 bid, par offered on Friday, according to a market source.

The deal, which upsized from $4.25 billion, priced at 99 on Thursday, with pricing having tightened from 98 to 98.5, earlier in the week.

The $500 million upsize came as a result of a downsize in the concurrent sale of HUB’s identically rated 7¼% senior secured notes due 2030, to $2.175 billion from $2.675 billion, with some high-yield bond accounts heard to have backed away when pricing on the bond dropped below 7 3/8%.

Fund flows

The dedicated bank-loan funds saw $320 million of net inflows in the week to the Wednesday, June 7 close, according to a market source.

These inflows represent just the third positive weekly cash flows for the loan funds in 52 weeks, the source added.

The bank-loan ETFs saw the greater part of those inflows, taking in $284 million on the week.

The most recent reported daily cash flows of the bank loan funds were mixed.

Bank-loan ETFs saw $64 million of daily inflows on Thursday.

However actively managed funds sustained $48 million of outflows on the day, according to the 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.