Trlpc barclays hunts for loans; launches 300 mln euro equivalent owic

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Barclays has launched a 326 million euro-equivalent ($365.97 million) auction on Europe's secondary loan market as it seeks to buy assets, banking sources said on Monday. The offers wanted in competition (OWIC) includes 84 names across a number of tranches, denominated mainly in euros with some sterling and dollars. Offers are due March 4 at 2pm, the sources said. The OWIC has an average offer of 100.33, according to Thomson Reuters LPC data.

Barclays is conducting the OWIC in order to ramp up warehouses for new Collateralised Loan Obligations (CLOs), the sources said. Barclays declined to comment.

OWICs are seen as a fast route to acquiring assets as a buyer submits a list of names to the market it would like to purchase and waits for potential sellers to come back with the best price they are willing to sell the paper for by the deadline. They are quite unusual and happen when paper is hard to source, typically in a technical market where demand far outweighs supply.

With a number of new CLOs ramping and a lack of primary loans in syndication, more OWICs could emerge as investors and bankers focus their attention on the secondary loan market to source product. Many investors are reluctant to sell paper at the moment because there is very little to reinvest the proceeds into. An OWIC could prompt potential sellers out of the woodwork if they are offered a good price. Most of the positions vary between 2 million euros and 5 million euros, but some of the larger positions include 9.5 million euros-equivalent of British payment processing company Worldpay, 9.5 million euros-equivalent of UK theme park and attraction operator Merlin and 6 million euros of European card payment services company Nets. ($1 = 0.8908 euros)