McLeod Moves Up On Higher Equity Valuation

McLeodUSA's $615 million "B" loan traded up to 50-52 up from 46-48. A trader attributed the rise to a spike in the company's equity.

  • 07 Jan 2005
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McLeodUSA's $615 million "B" loan traded up to 50-52 up from 46-48. A trader attributed the rise to a spike in the company's equity. "If the equity market thinks it's worth more maybe the banks should too," he said. In the last three weeks McLeod's share price has tripled in value to 75 cents. Kenneth Burkhardt, McLeod's executive v.p., cfo and director, declined to comment on price movements in the bank debt.

The share price climbed after MCI announced it will use McLeod's facilities to provide local telephone services to its residential customers. Also last week, McLeod announced a five-year extension of its contract with the state of Iowa for operations and maintenance of its communications network. The extension of the contract will bring McLeod additional revenues of approximately $5 million.

McLeod's credit plummeted during the second half of 2004 (LMW, 10/15). Last May, the debt was quoted in the 70s, but slid after McLeod reported a net loss of $91.4 million and declining revenues of $193 million. McLeod emerged from bankruptcy in April 2002.

  • 07 Jan 2005

GlobalCapital European securitization league table

Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 Bank of America Merrill Lynch (BAML) 6,415 22 12.84
2 Citi 5,781 17 11.57
3 BNP Paribas 3,530 14 7.06
4 Credit Suisse 2,783 8 5.57
5 Rabobank 2,633 4 5.27

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 98,446.48 276 13.35%
2 Bank of America Merrill Lynch 90,174.33 262 12.23%
3 Wells Fargo Securities 70,282.48 216 9.53%
4 JPMorgan 51,967.93 167 7.05%
5 Credit Suisse 41,447.11 125 5.62%