Warner Chilcott Corp.'s $1.4 billion "B" term loan brought in more than $2 billion in investor commitments despite having total leverage over seven times. [Despite the high leverage, the pharmaceutical company's strong business profile and steady product revenue convinced buysiders.] Unsecured creditors of bankrupt airline ATA Holdings were set for a substantial recovery on their defaulted investments. The Seaport Group, a New York distressed dealer, was expecting ATA's bonds to recover to the mid-70's, as opposed to the mid-50's where they were trading the week before. [Predictions proved to be disastrously wrong as bonds of ATA were trading between 4.30 and 4.50, as of their last sale date on Dec. 21. The bonds had slid as low as the 2.00 range.]
One Year Ago In The Credit Markets
