WorldCom Moves Higher

  • 20 Apr 2003
Email a colleague
Request a PDF

WorldCom bank debt ticked up slightly on news that the company has filed its plan of reorganization. While the plan suggests that senior debt holders, including lenders, will receive 35.9 cents on the dollar, the bank debt paper only crawled about two points higher to the 26 ­ 27 1/2 context. The bank debt is quoted about a point behind the company's bonds due to its relative illiquidity. No bank debt was said to have traded. "The real question is if the banks will want to sell," said one trader, explaining that the amount of equity that lenders will ultimately receive under the reorganization plan will affect whether or not there will be any sellers.

According to the plan of reorganization, senior lenders can elect to receive 14.36 shares of new common stock for each $1,000 of their allowed claim or new notes in the amount of 35.9 cents for each dollar of claim. However, if senior debt holders, including those with claims to $2.81 billion in principal amount of bank debt and $24.25 billion in senior notes, elect to receive new notes in an aggregate principal amount greater than $3.42 billion, the plan's oversubscription clause will be triggered. In the case of oversubscription, each senior debt holder will receive new notes in a principal amount equal to .359 times the creditors' pro rated claim and 14.36 shares of new common stock for each $1,000 of claim unfulfilled. Calls to the company were not returned by press time.

 

  • 20 Apr 2003

GlobalCapital European securitization league table

Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 BNP Paribas 13,823 26 18.14
2 Bank of America Merrill Lynch (BAML) 8,207 26 10.77
3 Lloyds Bank 7,202 22 9.45
4 Citi 6,256 16 8.21
5 JP Morgan 5,220 8 6.85

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 105,474.10 301 10.96%
2 Bank of America Merrill Lynch 86,762.28 250 9.02%
3 JPMorgan 81,465.60 238 8.47%
4 Wells Fargo Securities 77,934.65 225 8.10%
5 Credit Suisse 63,570.21 165 6.61%