The bank debt for Consolidated Container Company has ticked up to the 97 context, with paper changing hands in that range. The company has been able to turn around and stabilize, said one dealer, noting that the plastic container manufacturer has been able to perform well operationally. Moreover, "Technicals have moved in their favor," said one trader.
This time last year, the bank debt was changing hands in the mid-to-high 80s as Consolidated Container sought to amend its credit facility. The amendment was essentially designed to give the company breathing room by modifying the amortization payments due from March 31, 2003 to June 29, 2005. The changes were targeted to help the company meet its covenants (LMW, 1/13/03). Consolidated Container had $95.6 million outstanding on its "A" loan, $222.7 million on its "B" loan, $35 million on its "C" loan, and $36.5 million on a tranche 2 converted term loan at the end of September. Calls to Tyler Woolson, cfo of Consolidated Container, were not returned.