Kmart Continues To Drop On Weak Results

  • 29 Sep 2002
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Levels for Kmart's bank debt continued to plummet after the company released second quarter financial results on Sept. 16. Traders quoted the paper in the 27-31 range last week, down from a wide bid-ask spread of 30-40 two weeks ago, and one dealer noted that a small piece of the company's bank debt had traded around the 28 level.

Kmart announced a net loss of $333 million in the second quarter of 2002, excluding non-comparable items, discontinued operations and reorganization items. The company also said that its net sales for the 13-week period ending July 31, 2002 decreased by more than 15% compared to last year. At the end of August, however, Kmart still had $830 million in cash and full availability under its $1.5 billion debtor-in-possession credit facility. Calls to Albert Koch, cfo, were referred to a spokesman, who did not return calls by press time.

Kmart's bank debt began dropping after the company filed a motion to amend its DIP facility in mid-August. Previously, the paper had settled into the 60s.

  • 29 Sep 2002

GlobalCapital European securitization league table

Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 Citi 3,691 11 20.70
2 Morgan Stanley 2,420 6 13.57
3 Goldman Sachs 2,096 5 11.75
4 BNP Paribas 1,686 6 9.45
5 Barclays 1,565 4 8.78