Kindred loan trades higher; new Fortescue deal pressures existing paper; Indivior sweetens talk

By Paul A. Harris

Portland, Ore., March 6 – Friday's bank loan market was quiet, and all aboard seemed to be buyers, a trader said.

“We were hearing that CLOs had been taking prints above par on Thursday – taking profits or making way for a calendar,” the trader added.

Among new issues, Kindred Healthcare, Inc.'s $200 million term loan, which priced on Thursday at 99.5, was seen trading at par bid, par ½ offered on Friday.

Fortescue Metals Group's $7.39 billion bank loan debt, which launched at a Friday bank meeting, was putting pressure on the existing term loan paper, the trader added.

And, Indivior plc widened the spreads and hiked the discount on $635 million and €100 million of five-year term loans B on Friday, according to a market source.

Kindred Healthcare’s deal was trading at par bid, par ½ offered on Friday afternoon, according to a trader.

It was upsized from $150 million, and came rich to price talk of 98.75 to 99.

The Libor plus 325 basis points loan has a 1% Libor floor.

The new loan paper will be fungible with the outstanding $995 million of term loans under Kindred’s existing senior secured term loan facility, according to the release.

Proceeds will be used to pay down the company’s $900 million senior secured asset-based revolving credit facility.

The financing is expected to close on March 10.

J.P. Morgan Securities LLC was lead arranger and bookrunner.

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