A $5 million piece of 360networks bank debt took a 10-point fall early last week and traded into the 43-44 range after the company announced its earnings had been slashed. Credit Suisse First Boston was rumored to be the seller and Bear Stearns was said to have bought the piece, although dealers at both banks would not comment. One trader called the initial drop in levels a result of a "panick sale," but adds they've since rebounded to the 44-46 range. Dealers agree that the telecommunications company is still struggling in a saturated market. The company is an international fiber optic cable provider based in Vancouver, British Columbia. Calls to the company were not returned by press time.
The company has a $1.2 billion loan that breaks down into three tranches. Pricing is 4 1/2 % basis points over LIBOR. J.P. Morgan Chase and Credit Suisse First Boston are the lead arrangers, according to Capital DATA Loanware.