Bausch & Lomb Inc., the maker of eye-care products owned by Warburg Pincus LLC, is refinancing $2.9 billion of loans to lower borrowing costs. HCA Holdings Inc. is seeking additional loans to refinance debt.
Bausch & Lomb’s $1.92 billion six-year term loan B will pay interest at 3 percentage points more than the London interbank offered rate, with a 1 percent minimum on the lending benchmark, according to a person with knowledge of the transaction. HCA, the largest for-profit U.S. hospital chain said today it is seeking a $2 billion loan after it arranged a $2.37 billion credit this week that allowed it to reduce interest payments.
Federal Reserve Chairman Ben Bernanke said today that alternatives to Libor are being considered. The international regulatory community is taking steps to address the integrity to Libor and considering transitions toward alternative benchmarks, he said during a meeting of the Financial Stability Oversight Council.
Invesco Ltd.’s exchange-traded fund, which invests in the largest first-lien loans, recorded its biggest deposits in a single day. Invesco’s PowerShares Senior Loan fund, started two years ago as the first ETF solely dedicated to purchasing floating-rate debt, reported the creation of 7.4 million shares yesterday, valued at about $185 million, according to data compiled by Bloomberg. The pool’s assets under management have more than doubled since the start of the year to $3.6 billion.
Warner Music Group Corp., the third-largest global music content company, is seeking $820 million in loans to support its acquisition of Parlophone Label Group and for general corporate purposes, according to a person with knowledge of the transaction.
Virtu Financial LLC, the Silver Lake Partners-controlled electronic trading firm, increased a loan it’s seeking to support a dividend payout to $150 million from $100 million, according to a person with knowledge of the transaction.
The average yield on the JPMorgan Leveraged Loan Index dropped to a new low of 5.64 percent yesterday. The price of loans was little changed today, ending at 98.5 cents on the dollar, the highest level since July 2007, according to the Standard & Poor’s/LSTA U.S. Leveraged Loan 100 Index.