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High-Yield Roundup

18 May 2002

Last week was flat overall in high-yield, and traders said 90% of the trading was in bonds of Adelphia Communication. In the primary market, PacifiCare announced it would try to issue again after a planned offering was called off last summer. A deal by TrumpHotel & Casinos was still waiting to price at Thursday's close as traders remained skeptical that it would get done at all. Here was other selected action.

Spectrasite Trades Up On "Dutch Tender"

Spectrasite Holdings saw its 12.5% notes of '10 (Caa3/CCC+) trade up four points to 49 after the firm announced that it would make a "Dutch tender" offer for five of its six outstanding bonds. In such a tender offer, the company allows investors to offer their bonds within a range of prices, and the company chooses the price it will pay from within that range. On the 12.5% notes of '10, the price range is 45.5-52.


Adelphia Drops 20 Points Amid Turmoil

Adelphia Communications' bonds fell 20 points amid a host of negative events and a continued delay in the release of the cable company's financials. The 10.875% notes of '10 (Caa1/CC) were bid at 69 on Thursday. Bonds of Charter Communications were weaker in sympathy. The firm's 8.625% senior notes of '09 (B2/B+) traded at 84 on Thursday afternoon.


Beverly Enterprises Drops On Investigation, Magellan Sees Headwinds

News that the state of California is investigating possible criminal charges against Beverly Enterprises sent the nursing home provider's 9.625% senior notes of '09 (B1/B+) down three points to a 102 bid.

In other healthcare sector trading, Magellan Health Service's 9.375% senior notes of '07 (B2/B+) were two points weaker at 98, after the psychiatric care provider announced disappointing numbers.

18 May 2002