Tyco International's February 2003 bank debt rallied early last week, climbing from the 87-89 range to 91 1/293 1/2 after the company was able to complete its initial public offering of the CIT Group. The market buzzed about a $30 million trade of Tyco's bank debt, but many dealers were skeptical whether the trade took place. By last Wednesday, levels for the paper had dipped back to 89-91.
The spinoff of CIT was seen as a move to add much-needed liquidity to the company. The name had fallen from the mid-90s to the high 80s the previous week as investors worried that the company would not be able to complete the spinoff. At that time, other dealers suggested that the name had fallen due to concern over the company's books (LMW, 7/1). The company is denying any accounting indiscretions. A spokesman did not return calls by press time.