ION, Polymer, Ryman price; Seadrill brings $1 billion; loan funds see $1.1 billion outflows

By Paul A. Harris

Portland, Ore., June 5 – Leveraged loan primary activity sustained a rapid pace on Thursday as ION Trading Technologies Sarl, Polymer Group Inc. and Ryman Hospitality priced term loans on Thursday.

And Seadrill rolled out a $1 billion add-on to its term loan, with a bank meeting set for early in the week ahead.

Meanwhile in the secondary the LCDX22 index of bank loan credit default swaps ended the Thursday session ¼ point higher at 104 5/8 bid, 105 1/8 offered, according to a market source.

Both those positive signs came despite a fund flows picture was thorny, as the dedicated bank loan funds saw $1.1 billion of outflows for the week to Wednesday, according to a mutual fund manager.

Seadrill to add $1 billion

Seadrill Operating LP and Seadrill Partners Finco LLC have set a bank meeting for Monday to launch a $1 billion add-on to their Libor plus 300 bps term loan B due February 2021 (expected ratings Ba3/BB-), according to a market source.

Deutsche Bank is the left lead. Barclays, Credit Suisse and RBC are the joint leads.

The loan has a 1% Libor floor and 101 soft call through February 2015. It also has a 1% annual amortization.

Proceeds will be used to refinance existing debt associated with West Auriga and West Capricorn which are being added to the collateral group.

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