Bank loans weaken amid wider volatility; Consumer Cellular, Resideo price loans

By Paul A. Harris

Portland, Ore., Feb. 22 – With the world's capital markets in the grip of volatility following Russia's invasion of the Ukraine on Thursday, existing loans were ¼ point to ½ point weaker on the day, according to a market source.

Later Thursday, as President Biden announced moves to forestall a worsening of inflation that could result from a big spike in energy prices, the stock market and the high-yield bond market both staged rallies, the source noted.

However bank loans failed to be lifted in that late Thursday rally.

Biden said the United States is working with oil producers to secure global energy supplies, the market source noted.

In the wake of these announcements the barrel price of West Texas Intermediate crude oil fell below $93.75, after trading above $100.00, earlier in the session, the market source noted.

In the primary market Consumer Cellular Inc. priced its fungible $872 million incremental first-lien term loan due December 2027 at SOFR plus 400 basis points atop a 0.75% floor at 98.8, the issue price coming cheap to talk.

And Resideo Technologies Inc. priced a fungible $200 million add-on term loan due 2028 (Ba1) with 225 bps spread to Libor atop a 0.5% floor at 98.875, at the cheap end of discount talk.

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