I've been trying to price a financing commitment which has already been. I have several pieces of debt including a Term loan, Sr. Secured, Sr. Secured 2nd lien, Sr. Secured 2nd Lien PIK, and Sr. Unsecured. For the non-bank debt I got comp debt from CapIQ and BB. The Term Loan I don't have a reference point for, its structured LIBOR+Spread and none of the Term Loans from BB are priced. Any idea how I can price this?
The issue I'm having is, none of my yields make any sense, I have higher yields for my Sr Secured, and lower yields for my 2nd Lien and unsecured. None of my subject debt is rated, so I did a crude method for narrowing down my comps, which is taking debt rated BBB- and below since the merged entity will be highly-leveraged and each pre-merger entity doesn't have any debt rated above BBB.
Its definitely possible, I'm just not sure how to approach it to get some reasonable results. I saw an analysis done by another firm and I'm trying to come up with my own MTM.
Any help/guidance/insight would be much appreciated.
May be able to help you but I need more background...
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