The judges decision created a degree of uncertainty for how the reorganization would progress and the seller most likely decided that 80 cents on the dollar was a good price to sell down some of its exposure, speculated one buysider. In connection with the judges ruling, the court set Exides enterprise value between $1.4-1.6 billion.
HealthSouth Corp.s revolver, meanwhile, rallied right up under par and was quoted in the 98-99 context following the companys business update presentation. Traders said the bank debt rallied partly due to sentiment that the company would eventually refinance the revolver and because of the loans relatively rich interest rate. Most importantly, however, the company was able to reassure stakeholders that HealthSouths business is on the right track and that the leverage is manageable, explained one buysider.
The loan had been slowly ticking up since the financial fraud at HealthSouth was revealed last March. The paper was quoted in the low 90s toward the end of last year. The company has about $374 million on its revolver, according to the presentation slides. Calls to Guy Sansone, a managing director with turnaround firm Alvarez & Marsal and cfo for HealthSouth, were not returned by press time.