A $25 million piece of The Spiegel Group's bank debt was sold above 95 1/2 by HypoVereisnbank last week. Two weeks ago the bank sold a $21 million piece of its holdings around 90-90 1/2 (LMW, 2/28) with Credit Suisse First Boston mentioned by market participants as the buyer. Reportedly, HVB has now sold its entire exposure to Spiegel. Traders said Imperial Capital was on the second trade. HVB and Imperial officials did not return calls. CSFB officials declined comment.
Spiegel's business will be reorganized under its Eddie Bauer division when it emerges from bankruptcy and investors are interested in owning a stake. According to the restructuring plan, unsecured creditors will recover approximately 91% of their claims through a combination of 47% in cash and 44% in equity. Before the plan was announced Spiegel was quoted in the 85-88 context. "The creditors were comfortable and excited about the prospects of owning Eddie Bauer," said Jim Brewster, Spiegel's cfo, said two weeks ago (LMW, 2/28). Downers Grove, Ill.-based Spiegel filed for bankruptcy in March 2003.