WEX, Strategic Partners, SeaStar Solutions free up; market bid lower following Brexit vote

By Sara Rosenberg

New York, June 24 – WEX Inc.’s credit facility made its way into the secondary market on Friday, with the term loan B quoted above its original issue discount, and Strategic Partners Acquisition Corp. and SeaStar Solutions broke as well.

WEX’s $1.21 billion seven-year term loan B had levels quoted at 99¼ bid, 99 5/8 offered, according to a trader.

Strategic Partners’ credit facility also broke for trading, with the $335 million seven-year first-lien covenant-light term loan seen at 99¼ bid, par offered, a market source said.

SeaStar Solutions’ fungible $90 million add-on first-lien term loan (B) due 2021 began trading too, with levels seen at 99½ bid, 100½ offered, a trader remarked.

In more news, bids were lower in general in the loan market after news surfaced that the United Kingdom voted to leave the European Union, according to a market source.

“Dealers dropped bids close to a point first thing and offers barely moved. Classic dealer behavior when they don’t want to trade because they are more nervous than their clients,” the source said.

“Anecdotally, there were plenty of buyers hoping for scared sellers and not finding them. Heard the same of the high-yield market,” the source continued.

“Bottom line, nothing much is happening yet and it probably should not happen, but the hysteria of the markets is capable of doing more than the fundamentals support,” the source added.

© 2015 Prospect News.
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