RLPC-CS sells 135 mln euros of European leveraged loans
By Tessa Walsh and Zaida Espana
LONDON May 15 (Reuters) - Credit Suisse (CSGN.VX: Quote, Profile, Research) sold a 135 million euro portfolio of high-quality European leveraged loans in a secondary market auction on Thursday, banking sources said.
Credit Suisse is taking advantage of the recent rise in secondary prices to achieve best price for the portfolio and received strong bids.
"It was a great response with very strong bids, it confirms that there is liquidity out there, and our expectations were more than met," a trader close to the deal said. Average bids on Europe's top 40 leveraged loans have rebounded to 90.39 percent of face value, giving gains of 537 basis points from mid February's lows of 85.02, according to data from Reuters Loan Pricing Corp.
The loans that were sold were a pocket of assets held in the bank, and were not part of Credit Suisse's banking book or a warehousing facility for Collateralised Loan or Debt Obligations (CLOs or CDOs), a banker close to the sale said.
"It's not warehouse or stuff we're stuck with it's a lot of on the run assets and leading names," a banker close to the deal said.
Traders away from the auction said the portfolio was inventory from the bank's proprietory trading desk.
The portfolio contained first lien paper of leading leveraged loans such as Amadeus Global Travel Distribution and directories business PagesJaunes, a small percentage of less well-known credits and a handful of second lien paper.
More than 60 investors bid for the assets in response to a Bids Wanted in Competition (BWIC) request by a noon deadline on Thursday. Continued...
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