Dollar Tree books close early; Arch Coal trades higher on earnings; Sabre sets talk on term loan

By Paul A. Harris

Portland, Ore., Feb. 4 – The LCDX 22 index of bank loan credit default swaps ended the Wednesday session down an eighth at 101 7/8 bid, 102 7/8 offered, according to a hedge fund manager.

Cash loans were flat on the day, according to a trader.

The Arch Coal, Inc. loan gained momentum after the company reported on Tuesday that its revenues grew and its losses narrowed during the fourth quarter of last year versus the fourth quarter of 2013.

Arch Coal's loan started week wrapped around 70 bid, then went as high as 75 bid, 76 offered in the wake of the report, the trader said.

Late Wednesday, it was well off those highs at 74 bid, the source added.

Meanwhile, books closed early and pricing tightened for the massive Dollar Tree Inc. $5.2 billion seven-year term loan B, which is going very well the trader said.

And Sabre Industries Inc. talked its $255 million seven-year covenant-light term loan at Libor plus 500 bps to 525 basis points with a 1% Floor at an original issue discount of 99.

Dollar Tree tightened pricing on its $5.2 billion seven-year term loan B and closed the books early.

The Libor spread was revised to 375 basis points from earlier spread talk of 375 bps to 400 bps.

The 0.75% Libor floor, the OID of 99 and the 101 six-month soft call protection were left unchanged.

Timing was accelerated, with the books closing at Wednesday's close.

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