Kmart Continues To Drop On Weak Results

  • 29 Sep 2002
Email a colleague
Request a PDF

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 BNP Paribas 10,542 20 18.54
2 Bank of America Merrill Lynch (BAML) 6,103 21 10.73
3 Citi 5,130 13 9.02
4 JP Morgan 4,681 6 8.23
5 Lloyds Bank 3,389 13 5.96

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 70,706.84 201 11.60%
2 Bank of America Merrill Lynch 60,472.76 166 9.92%
3 Wells Fargo Securities 48,082.68 138 7.89%
4 JPMorgan 48,046.47 137 7.88%
5 Credit Suisse 38,252.19 94 6.28%