October 26, 2016 / 3:43 PM / 2 years ago

(LON) Tunstall's secondary loan pricing falls

LONDON, Oct 26 (Reuters) - The price of UK healthcare provider Tunstall’s leveraged loans have fallen in the secondary market due to concerns about the company’s performance, banking sources said on Wednesday.

Tunstall’s dual-currency term loans have fallen by around 200bp this week, according to Thomson Reuters LPC data.

Private equity firm Charterhouse acquired Tunstall in 2008 backed with £237m of loans, including a £72m mezzanine tranche and raised an £89m acquisition facility in 2012.

Tunstall refinanced its total debt in 2013 with a £350m all-senior leveraged loan, according to TRLPC data.

Average quotes on the company’s sterling term loan B were 87.5 percent of face value on October 25, down from 89.35 on October 24.

A euro term loan B was quoted at 87.3 on October 25, down from 89.5 a day earlier, according to TRLPC data.

One source quoted both loans at 86.5 on October 25 and 26.

At these levels, the company’s loans are now attracting interest from distressed investors, the sources said.

“Tunstall is on our list,” one of the sources said.


Pricing has been rising in Europe’s secondary market for much of this year as strong demand for a limited supply of loans has pushed pricing higher.

Average bids on Europe’s top 40 leveraged loans was 100.5, according to TRLPC data on October 25.

Tunstall’s loan pricing has been dropping for much of this year, the data shows.

The sterling term loan was quoted at 92.7 at the end of March and dropped to 91.7 at the end of June. The euro term loan was quoted at 93.1 at the end of March and dropped to 92.8 at the end of June, TRLPC data shows.

Tunstall’s loan pricing was last around 85 percent of face value in April 2014, after the company produced a weak set of business results.

Charterhouse declined to comment. (Editing by Tessa Walsh)

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