Ford term loan moves around with sales results; Chrysler Financial first lien heads higher

By Sara Rosenberg

New York, Sept. 1 - Ford Motor Co.'s term loan was unchanged to lower on the day, depending on who was asked, following the release of monthly sales numbers that, while good, fell short of expectations.

Also in the secondary market, Chrysler Financial Services LLC's first-lien term loan was better as Chrysler Group LLC came out with its August sales numbers.

Ford steady to softer

Ford's term loan was flat to weaker during Tuesday's trading session as the company reported sales numbers that were lower than what people were expecting, according to traders.

The Dearborn, Mich.-based automotive company's term loan was quoted by one trader at 86½ bid, 87½ offered, unchanged from Monday. This trader, however, said that he saw the loan at 86 bid, 87 offered early in the day, but then it pushed its way back up.

By comparison, a second trader was seeing the term loan quoted at 86 bid, 87 offered in the afternoon, down from 86½ bid, 88 offered on Monday.

And, the company's revolver was quoted by the second trader at 86½ bid, 88 offered as it widened out from 86 bid, 87 offered early in the day on Monday.

Ford sales show improvement

For the month of August, total Ford sales, including Volvo, were 182,149, up 17% from 155,690 in August 2008.

Total Ford, Lincoln and Mercury sales for the month were 176,323, up 16.8% from 151,021 last year.

Total car sales for the month were 65,654, up 24.6% from 52,677 in the comparable prior-year period.

And, total truck sales were 110,669, up 12.5% from 98,344 in August 2008.

The company attributed the rise in sales to increased customer demand for its fuel-efficient cars, crossovers and trucks.

Chrysler gains ground

Chrysler Financial's first-lien term loan strengthened on Tuesday after Chrysler Group LLC released its sales results, according to a trader.

The first-lien term loan was quoted at 95½ bid, 96½ offered, up from 95 bid, 95¾ offered, the trader said.

The company's second-lien term loan, however, was unchanged at 89 bid, 91 offered, the trader added.

For the month of August, Chrysler Group had total sales of 93,222, down 15% from 110,235 last year.

Total car sales for the month were 22,638, down 13% from 26,016 in August 2008.

And, total truck sales were 70,584, down 16% from 84,219 last year.

Chrysler sales up from July

Although down on a year-over-year basis, Chrysler Group's August sales results showed a 5% improvement when compared with July of this year despite low inventory levels on a number of popular nameplates, a news release said.

"Chrysler Group had another strong sales month in August, with the majority of Chrysler Group nameplates posting year-over-year or month-over-month sales improvements," said Peter Fong, president and chief executive officer-Chrysler brand and lead executive for the sales organization, Chrysler Group LLC, in the release.

"The [Car Allowance Rebate System] program gave a boost to the industry in August, and as a result, we've increased production by more than 50,000 units, our factories are full-steam ahead building Chrysler, Jeep and Dodge vehicles for customers and replenishing dealer inventories," Fong added in the release.

Chrysler Financial is a provider of financial services for vehicles. Chrysler Group is a producer and seller of Chrysler, Dodge and Jeep vehicles.

Sotheby's closes

Sotheby's closed on its new $200 million three-year asset-based revolving credit facility, according to an 8-K filed with the Securities and Exchange Commission on Tuesday.

GE Capital and HSBC Bank acted as the joint lead arrangers and bookrunners on the deal that was completed on Monday.

During syndication, the revolver was upsized from $150 million as a result of oversubscription.

Pricing on the revolver can range from Libor plus 400 basis points to 450 bps based on use, and there is a 2% Libor floor and a 100 bps unused fee.

Proceeds were used to replace the company's existing revolver that was set to expire in September 2010 and are available for general corporate purposes, including working capital and capital expenditures.

Sotheby's is a New York-based auctioneer of fine art, antiques and decorative art, and jewelry and collectibles.

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