Comdisco Moves Up In Auction
A $15 million piece of Comdisco's bank debt traded on Tuesday in an auction. Deutsche Bank was rumored to be the buyer, and Citibank was reportedly the seller. Officials at both shops would not comment. Exact levels could not be ascertained, although the market for the credit is said to be 80-81. Comdisco, based in Rosemont, Ill., is a technology services provider. A company spokeswoman declined to comment. "We don't comment on market rumors," she said.
Two weeks ago, Comdisco's levels took a dip to the 79 1/2-80 range after the company announced it had filed for Chapter 11 (LMW, 7/23). The company had announced earlier this year that it had drawn roughly $800 million of its $1.1 billion debt. Despite the recent turn of events, dealers note that levels are up from the low 70s in mid-June. The company has a $550 million deal that breaks down into two tranches and expires in 2002. Pricing is 70 basis points over LIBOR. Citibank and Bank of America are the lead arrangers.