Some trading activity on USG Corp., Armstrong Holdings, Owens Corning and W.R. Grace was registered after results from the election were disclosed. With more Republican seats the Senate could now be more favorable for asbestos names, a trader noted. Another trader said Sen. Tom Daschle's (D-S.D.) failed reelection bid had also been interpreted by the market as a positive event. "People perceived him as obstructive to the settlement," he said.
A $30 million auction of USG paper was sold around the 107 1/2-108 context. Meanwhile, Owens Corning bank debt traded in the 75-78 range. Armstrong's bank debt was quoted in the mid 68-70, while W.R. Grace's pro rata was quoted in the 107-108 range after some trades took place around 106.
A month-and-a-half ago Owens Corning's bank debt jumped 10 points to the 86-90 range after a tentative agreement was reached between Republicans and Democrats to resolve the ongoing asbestos litigation. W.R. Grace traded in the 99-101 range. Owens Corning's debt then dropped down to the 75-77 range when the market started fearing a positive ruling toward the substantive consolidation issue (see story, page1).