OM Group sets bank meeting; B&G Foods sets talk; loan funds see $225 million Friday outflow

By Paul A. Harris

Portland, Ore., Oct. 5 – Trading was sparse on Monday, and loans ended flat, according to a trader based on the East Coast of the United States.

Dedicated bank loan funds saw $225 million of outflows on Friday, the most recent session for which data was available at press time, the trader said, adding that it was a big daily outflow.

If there is any evidence that the asset class is showing any wear, with respect to week-upon-week of negative cash flows being reported, it is in the high beta names, the trader said, adding that it has become more difficult to persuade investors to get involved in the lower-quality portion of the credit spectrum.

The LCDX 22 index of bank loan credit default swaps finished the day one-eighth of a point higher at 100 1/8 bid, 101 1/8 offered.

OM Group Inc. plans to roll out $575 million of term loan debt at a bank meeting scheduled to start at 11 a.m. ET on Tuesday.

B&G Foods Inc. set spread talk for its $500 million seven-year second secured term loan B at Libor plus 325 bps to 350 bps atop a 75 bps Libor floor. The deal has price talk of 99 to 99.5.

Quanex Building Products Corp. increased spread talk to Libor plus 525 bps from 375 bps for its $310 million seven-year covenant-light term loan B.

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