Co-ordinating the Wind sell-down

The mood in Deutsche Bank’s loan trading team must have turned ugly this week as a bid of 95 appeared for Wind’s B/Cs, now in their second week of trading. Market chatter has been widespread that arranging banks ABN AMRO, Deutsche and San Paolo IMI are sitting on a combined overhang of up to €3bn, prompting one audacious broker to attempt to pick up paper at a deep discount.

The fact that the trade remains unfilled is testament to sell-down coordinator Deutsche’s careful preparation for the bumpy ride ahead. Deutsche has been careful to allocate participants precisely at their desired hold levels, and is rumoured to have instructed its traders to scour the market for any loose paper that could open a chink in its armour. Moreover, as a regular primary arranger, Deutsche is not without influence, and potential counterparties will be mindful of incurring the bank’s wrath should the sell-down break up at this early stage. Meanwhile, the second-lien piece traded in a range from 100 – 102, demonstrating that funds still have plenty of appetite for Wind’s higher-yielding tranches.

Elsewhere, the focus was on Basell, which became free to trade last week. The name received an early boost, rising to just below 102 in early trading before settling into a 101.375/101.625 context. Major losers continue to stem from plumbing products and retail sectors, with Sanitec quoted wide in a 97/98 market, Grohe wider at 96/98, and Focus Group widest, with bids of 95 competing with stoic offers around 98.