Energy Future Holding Corp.’s $3.81 billion term loan rose to the highest in more than a month, while Tribune Co. (TRBAA:US) is seeking $4.1 billion in loans to support its acquisition of Local TV LLC.
Debt of Energy Future, formerly called TXU Corp., rose to 68.44 cents on the dollar today, the highest since Sept. 23, according to prices compiled by Bloomberg. The Public Utility Commission of Texas agreed that it should mandate reserve margins, giving power companies access to extra electricity during times of peak demand, according to an Oct. 25 video of the meeting posted on the agency website. That may lead to the establishment of a so-called capacity market that pays generators for having available electricity.
Tribune will meet with lenders at 11 a.m. on Oct. 31 to discuss a $3.8 billion term loan due in seven years and a $300 million revolving line of credit that expires in five years, according to a person with knowledge of the transaction. Proceeds of the JPMorgan Chase & Co.-led financing will fund the acquisition of Local TV’s 19 television stations and refinance debt.
Arby’s Restaurant Group Inc. is seeking a $335 million term loan due in seven years and a $35 million revolver to support a dividend payout, according to a person familiar with this offering, who asked not to be identified because terms aren’t set. Credit Suisse Group AG, the bank arranging the financing, will host a lender meeting on Oct. 30 at 10 a.m. in New York.
Wells Fargo & Co. is forecasting $60 billion in collateralized loan obligation formation in 2014, according to an Oct. 25 report by the San Francisco-based bank. About $15 billion of U.S. CLO issuance per quarter, excluding refinancings, is “sustainable” next year, analyst Dave Preston wrote in the report.
The Loan Syndications and Trading Association (0221629D:US) plans to send a letter to the Federal Reserve, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corp. and the Securities and Exchange Commission on Oct. 30 urging regulators to reconsider rules suggesting banks hold onto a portion of every loan they sell to CLOs. The legislation proposed under the Dodd-Frank Act would lead to consolidation and drive up costs to issue CLOs.
Loan prices rose 0.04 cent to 97.95 cents on the dollar today, according to the Standard & Poor’s LSTA Leveraged Loan 100 Index. Year to date the debt has gained 3.93 percent.
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