Loans down ¼ point Monday; Schumacher allocates; MedImpact, GTT Communications set meetings

By Paul A. Harris

Portland, Ore., Sept. 28 – Against a backdrop of volatility in the markets on Monday, cash loans were down ¼ point across the board, a trader said.

Higher beta names bore the brunt of the selling, the source added.

The LCDX22 bank loan index ended at 100 bid, 101 offered, down 3/8 of a point on the session.

And the cash flows of the dedicated bank loan funds were negative on Friday, the most recent session for which data was available at press time, according to a market source.

Loan funds saw $75 million of outflows on the session, $21 million of which flowed out of bank loan exchange-traded funds.

Loan paper of Valeant Pharmaceuticals International Inc. was 2½ points to 2¾ points lower from Friday levels, according to a trader who spotted it at 97 bid, late Monday, down from as high as 99¾ bid on Friday.

The loan sold off on news that 18 Democratic members of a U.S. House of Representatives committee urged their chairman to subpoena documents related to price increases for Valeant’s heart drugs, Nitropress and Isuprel, the prices of which Valeant increased by 212% and 525%, respectively, the source said.

Schumacher Group priced $535 million of term loan debt on Monday.

GTT Communications Inc. planned a bank meeting on Thursday for a $450 million credit facility.

A bank meeting for MedImpact’s $350 million seven-year first-lien term loan B is set for Wednesday.

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