Market players suggest that Xerox Corp. could be preparing for some type of debt refinancing and that speculation has propped the bank debt about two points higher over the last couple of weeks. The market for Xerox's revolver is quoted in the 94 1/2 context, its "A" piece is in the 97 - 97 1/2 range, and the "B" loan is quoted as high as the 99 level. There are a number of reasons leading to the refinancing speculation. Xerox filed an amended shelf registration last week for up to $3 billion in new securities. Traders also said the high-yield market is hot and the company has a short-term debt maturity schedule. The current buzz speculates that a new debt package will likely consist of new bonds and a bank debt refinancing. Calls to Larry Zimmerman, Xerox's cfo, were referred to the company's spokeswoman, who declined to comment, noting that the company's earnings come out next week.
April 16, 2003
