Beacon tightens talk; Tronox loan ‘beaten up’; Yom Kippur session sees low trading volume

By Paul A. Harris

Portland, Ore., Sept 23 – Wednesday’s Yom Kippur session passed in relative quiet, as many market participants were away from their desks.

Cash loans traded an eighth to a quarter of a point lower, in very low volume, a trader said.

The LCDX 22 bank loan index was unchanged on the day at 100½ bid, 101½ offered, a hedge fund manager said.

The bank loans of Tronox, Inc. was beaten up on Wednesday, a bank loan trader said, spotting that loan at 91 bid, 92 offered late in the afternoon, down from 93 bid in the morning.

Away from the secondary market, new loan business could heat up, a trader said.

Banks and CLOs have been bidding up quality names such as Dollar Tree Inc. and Hilton Worldwide Holdings Inc., both of which are trading above par, the trader said.

But retail investors are having difficulty reconciling themselves to above-par prices when Cablevision Systems Corp. is in the market with $2.3 billion of seven-year term loan B paper talked at Libor plus 350 basis points with a 1% Libor floor at 99.

In other news, Beacon Roofing Supply Inc. tightened spread talk on its $450 million seven-year covenant-light senior secured term loan B (B2/BB+) on Wednesday.

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