A $40 to $50 million block of Owens Corning's bank debt traded at 64-66 today, which is up from the low 60s for the credit. Deutsche Banc Alex. Brown was rumored to be involved, although that could not be confirmed with officials.
USG Corporation's bank debt is bouncing around on questions of whether the company will file for Chapter 11 bankruptcy protection. This week the paper traded at 68, which is up from the low 60s a week ago. The paper has plummeted from the 80s since the company announced that it's facing ever increasing asbestos litigation as one of the last companies that hasn't filed. A total of $20 million changed hands.
Dealers say a number of telecom credits continue to plunge deeper: XO Communications traded at 76. McLeod USA traded down from the low 90s to the high 80s. In par news, VoiceStream's "A" and "B" tranches both traded up over par this week. One trader explained that investors believe Deutsche Telekom will call the paper at par in the near future, which will keep levels steady.